PUUILO PLC
Report by the Board of Directors and Financial Statements
31 January 2025
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Table of contents
Report by the Board of Directors ................................................................................................................... 5
Sustainability statement ........................................................................................................................... 23
Puuilo in Brief ................................................................................................................................. 23
General disclosures ........................................................................................................................ 23
Preparation basis ........................................................................................................................ 23
Governance ................................................................................................................................ 24
Strategy ...................................................................................................................................... 27
Impact, risk, and opportunity management ................................................................................. 35
Environment ................................................................................................................................... 43
EU Taxonomy ............................................................................................................................. 43
ESRS E1 Climate Change .......................................................................................................... 49
ESRS E5 Resource use and circular economy ........................................................................... 57
Social ............................................................................................................................................. 60
ESRS S1 Own workforce ............................................................................................................ 60
ESRS S2 Workers in the value chain .......................................................................................... 67
ESRS S4 Consumers and end-users .......................................................................................... 69
Governance .................................................................................................................................... 72
ESRS G1 Business Conduct ....................................................................................................... 72
Financial Statements ............................................................................................................................... 76
Consolidated Statement of Comprehensive Income ......................................................................................... 76
Consolidated Balance Sheet ...................................................................................................................... 77
Consolidated Statement of Changes in Equity ................................................................................................. 78
Consolidated Statement of Cash Flows ......................................................................................................... 79
Notes to the Consolidated Financial Statements.............................................................................................. 80
1 BASIS OF PREPARATION ........................................................................................................................... 81
Note 1.1 Company information ....................................................................................................... 81
Note 1.2 Basis of preparation ......................................................................................................... 81
Note 1.3 Accounting estimates and judgements ............................................................................. 82
2 BUSINESS PERFORMANCE ........................................................................................................................ 83
Note 2.1 Revenue .......................................................................................................................... 83
Note 2.2 Segment information ........................................................................................................ 84
Note 2.3 Expenses ......................................................................................................................... 84
Note 2.4 Income taxes .................................................................................................................... 89
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3 WORKING CAPITAL ................................................................................................................................. 91
Note 3.1 Inventories ....................................................................................................................... 91
Note 3.2 Trade and other receivables ............................................................................................. 91
Note 3.3 Trade and other payables ................................................................................................ 92
4 CAPITAL EMPLOYED ............................................................................................................................... 94
Note 4.1 Goodwill ........................................................................................................................... 94
Note 4.2 Intangible assets .............................................................................................................. 95
Note 4.3 Property, plant and equipment ......................................................................................... 96
Note 4.4 Leases ............................................................................................................................. 98
Note 4.5 Provisions ...................................................................................................................... 101
5 CAPITAL STRUCTURE AND FINANCING ....................................................................................................... 102
Note 5.1 Capital management and net debt ................................................................................. 102
Note 5.2 Equity ............................................................................................................................. 103
Note 5.3 Earnings per share ......................................................................................................... 104
Note 5.4 Financial risk management ............................................................................................ 104
Note 5.5 Financial assets and liabilities ........................................................................................ 107
Note 5.6 Finance income and costs .............................................................................................. 109
Note 5.7 Contingent liabilities ....................................................................................................... 110
6 OTHER NOTES ..................................................................................................................................... 111
Note 6.1 Related parties ............................................................................................................... 111
Note 6.2 Group structure and consolidation .................................................................................. 111
Note 6.3 Significant events after the end of the reporting period ................................................... 112
Note 6.4 New and upcoming accounting standards ...................................................................... 114
Parent company Financial Statements ....................................................................................................... 115
Parent company’s income statement ......................................................................................................... 115
Parent company’s balance sheet............................................................................................................... 116
Parent company’s cash flow statement ...................................................................................................... 117
Notes to the parent company’s financial statements ...................................................................................... 118
Accounting policies ....................................................................................................................... 118
Significant events in the financial period ....................................................................................... 118
Significant events after the end of the reporting period ................................................................. 118
Notes to the income statement ..................................................................................................... 121
Notes to the assets in balance sheet ............................................................................................ 122
Notes to the equity and liabilities in balance sheet ........................................................................ 122
Holdings in other companies ........................................................................................................ 123
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Report by the Board of Directors
Puuilo’s business operations
Puuilo is a Finnish discount retail chain. At the end of the financial period that ended on 31 January
2025, the strongly growing chain had 49 stores in different parts of Finland. In addition, customers are
served through an online store. The product assortment includes building supplies, tools, HVAC and
electrical accessories, pet food and supplies, car accessories, groceries, household products, garden
supplies, free-time and other accessories as well as services. Puuilo is one of the leading discount
retailers in Finland and it serves both consumers and B2B customers in the repair and maintenance as
well as construction sector. The company is known for its affordable prices and extensive product
assortment. During the financial period, three former Hurrikaani stores were opened: Ylöjärvi, Nokia and
Forssa. They were converted into Puuilo stores before opening. In addition, four other stores were
opened: Tampere Lahdesjärvi, Oulu Karjasilta, Äänekoski and Kirkkonummi.
Company structure
Puuilo Group’s parent company is Puuilo Plc, which engages in the business operations of selling
management services to the operative company of the Group. The Group also includes a retail business
company Puuilo Tavaratalot Ltd, which is 100% owned by Puuilo Plc. There were no changes in the
Group structure in the 2024 financial period.
Outlook for the financial year 2025
Puuilo forecasts that net sales will be EUR 425 – 455 million and the adjusted operating profit (adjusted
EBITA) will be EUR 70 – 80 million in the financial year 2025.
The forecast includes elements of uncertainty related to changes in consumer purchasing power and
behaviour. Additionally, geopolitical crises and international tensions may affect product availability and
prices.
Puuilo’s long-term targets
The company’s long-term financial targets for the strategy period 2024 – 2028:
• Growth: Net sales above EUR 600 million by the end of financial year 2028 (ends in January
2029)
• Profitability: Adjusted EBITA margin above 17% of net sales
• Profit distribution: The company aims to distribute at least 80% of net income for each financial
year
• Leverage: Net debt to adjusted EBITDA below 2.0x
Significant events
Performance matching share plan for key employees
The Board of Directors decided to launch a new share-based incentive plan for years 2024 – 2026. The
aim of the plan is to align the objectives of the shareholders and the key employees in order to increase
the value of the company in the long-term. In the plan, it is possible to earn time-vested matching reward
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shares and performance-based matching reward shares. The performance criteria are the Total
Shareholder Return of the Puuilo share (TSR) and Puuilo Group’s adjusted EBITA. The maximum
number of matching shares (gross before taxes) to be paid was 738,000 Puuilo Plc shares. The final
number of matching shares depends on the key employees’ participation and savings rate in the plan
and the fulfilment of the prerequisites for receiving matching shares. The potential award will be paid
partly in shares and partly in cash after the end of the holding period. The cash proportion is intended
to cover taxes. (Stock exchange release 16 April 2024)
At the end of the financial year, the maximum number of shares to be paid as award was 196,251 shares.
Puuilo Plc’s updated long-term financial targets for the strategy period 2024 – 2028
Puuilo released updated long-term financial targets for the strategy period 2024 – 2028. (Stock
exchange release 22 April 2024)
Composition of the Shareholders’ Nomination Board
Representatives of the three largest shareholders registered in Puuilo Plc’s shareholder register as of 1
October 2024 were elected to the Puuilo’s Shareholders’ Nomination Board along with the Chairman of
the Board of Directors, Lasse Aho, as an expert member. The three largest shareholders nominated the
following representatives to the Nomination Board: Ampfield Management, L.P., represented by
Emerson Moore, Markku Tuomaala, represented by Janne Koikkalainen and Mutual Pension Insurance
Company Ilmarinen, represented by Esko Torsti. (Stock exchange release 18 December 2024)
Significant events after the end of the reporting period
Adjusted EBITA exceeded guidance for financial year 2024, preliminary information on financial year 2024 results
Puuilo released preliminary information about the financial year 2024 results. Puuilo's net sales for the
financial year 2024 (February 2024 – January 2025) were EUR 383.4 million, and the adjusted EBITA
was EUR 67.0 million, or 17.5% of net sales. Previously, Puuilo had guided that the nets sales for the
financial year 2024 would be between EUR 380 – 400 million and the adjusted EBITA would be between
EUR 60–66 million. (Stock exchange release 10 March 2025)
Proposals of the Shareholders' Nomination Board
The Shareholders’ Nomination Board of Puuilo Plc proposes to the Annual General Meeting that the
number of the members of the Board of Directors will be five (previously six). The Nomination Board
proposes that current members of the Board of Directors Jens Joller, Mammu Kaario and Tuomas
Piirtola be re-elected. The Nomination Board also proposes that Susanne Hounsgaard and Markku
Tuomaala be elected as new members to the Board of Directors. Current members of the Board of
Directors Lasse Aho, Bent Holm and Anne-Mari Paapio have notified that they are no longer available
to be elected as a members of the Board of Directors. All proposed persons are independent of the
company and its major shareholders except Jens Joller who is independent of the company, but
dependent of the major shareholder. The Nomination Board proposes to the Annual General Meeting
that Mammu Kaario be elected as the Chair of the Board of Directors.
The Nomination Board proposes that the remunerations of the members of the Board of Directors are
as follows:
-EUR 65,000 (earlier EUR 60,000) to the Chair of the Board of Directors as annual remuneration
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-EUR 33,000 (earlier EUR 30,000) to the other members of the Board of Directors as annual
remuneration
-In addition, the Chair of the Audit Committee will be paid EUR 6,000 (earlier EUR 5,000) as annual
remuneration and other members of the Audit Committee EUR 3,000 (earlier EUR 2,500) as annual
remuneration
All remunerations will be paid in cash. (Stock exchange release 19 March 2025)
Refinancing
Puuilo has signed a new EUR 100 million long-term financing agreement with OP Corporate Bank Plc.
The new financing agreement has a maturity of 36 months and includes two 12-month extension options.
The new financing agreement replaces the previous agreement signed in 2021.
The financing agreement includes a total of EUR 70 million term loan and EUR 30 million revolving
credit facility (RCF). The funds will be used to repay existing loans, working capital financing and for the
Group’s other general financing needs. The terms of the financing agreement include one covenant: net
debt/EBITDA ratio.
The agreement also includes a EUR 30 million uncommitted additional financing option (accordion
option). However, this accordion option requires a separate financing decision from the bank. (Stock
exchange release 27 March 2025)
Change in the holding of Puuilo Plc’s treasury shares
A total of 126,481 Puuilo shares held by the company has been conveyed without consideration to 28
key employees who participated in the 2022–2024 share-based incentive program. The program was
announced on 20 April 2022 with stock exchange release. The conveyance is based on the authorisation
granted to the Board of Directors by the Annual General Meeting of Shareholders held on 15 May 2024.
After the share transfer on 14 April 2025, the company holds a total of 428,519 own shares. (Stock
exchange release 15 April 2025)
Board of Directors established a new long-term incentive plan for company’s key employees
The Board of Directors of Puuilo Plc has resolved to establish a new Long-Term Incentive Plan for the
key employees of the Company and its subsidiaries (“LTI”) and launch the first LTI plan period for 2025–
2027.
The purpose of the LTI is to encourage the key employees to acquire and own the Company’s shares.
The LTI also aims to align the interests of the shareholders and the key employees as well as to increase
key employees’ motivation and long-term commitment to the Company. The LTI is intended to consist
of annually commencing plan periods, each with a 12-month savings period followed by a holding period
of approximately one and a half year. The Board of Directors will resolve annually on the launch of a
new plan period. Participation in the LTI is voluntary, and key employees are invited to participate in
each plan period separately.
The first LTI plan period 2025–2027 begins on 1 June 2025 and ends on 31 May 2028. The first savings
period ends on 31 May 2026. The holding period begins at the first acquisition of savings shares. In the
2025–2027 plan period, the LTI is offered to approximately 100 key employees of the Group, including
also the Management Team and the CEO. As part of the LTI, the key employees have an opportunity
to make a one-off investment and/or save a proportion of their salaries and invest those savings in
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Puuilo shares. With the savings of the 2025–2027 plan period, Puuilo shares will be acquired in four
tranches estimated in September 2025, December 2025, March 2026 and June 2026.
In the 2025–2027 plan period, as a reward for their commitment, the Company grants the key employees
participating in the LTI a gross reward of one free matching share for every savings share acquired with
their savings. The participants have also an opportunity to earn one to three performance-based
matching shares (gross) for each savings share acquired with their savings if the performance criteria
set for the plan period are met. The performance criteria of the plan are tied to the total shareholder
return of the share (TSR), the company’s adjusted earnings before interest, taxes and amortisation
(EBITA) and return on invested capital (ROIC). Continuity of employment and holding of acquired
savings shares for the duration of the holding period, ending on the day following the 2027 financial
statement release, are prerequisites for receiving the award. The potential award will be paid partly in
shares and partly in cash after the end of the holding period. The cash proportion is intended to cover
taxes and statutory social security contributions arising from the award. Matching shares will be freely
transferable after their registration in a participant’s book-entry account. The savings shares and
matching share are Puuilo shares.
The maximum number of matching shares (gross before taxes) for the first plan period of 2025–2027 is
approximately 519 000 shares, calculated at the share price on 16 April 2025. The final number of
matching shares depends on the key employees’ participation and savings rate in the plan, the fulfilment
of the prerequisites for receiving matching shares and the number of shares acquired from the market
with savings. (Stock exchange release 17 April 2025)
Growth strategy
Puuilo’s target is to continue to strengthen its position as one of the leading discount retailers in Finland
by utilising its key strengths: maintaining an attractive and wide product assortment, low prices and
convenient shopping experience.
In line with its updated growth strategy, the company aims to open at least 5 – 6 new stores per year
and to continue to increase its like-for-like net sales by further increasing Puuilo’s brand awareness. The
company has an efficient and standardised store opening process, which enables the opening of several
stores each year without negatively affecting other operational activities. New stores are, on average,
profitable after the first full month of opening.
Puuilo aims to continue to develop its value proposition by continuing to provide wide product assortment
satisfying the needs of the customer base always with low prices. Puuilo also aims to continue investing
in the development and growth of its online store to offer its customers a possibility to shop diversely
both in the stores and the online store.
Store network development
During the financial year 2024, Puuilo opened a total of seven new stores. During the beginning of the
year, the company opened stores acquired from Hurrikaani in Nokia, Ylöjärvi, and Forssa. These stores
were converted into Puuilo stores before opening. Additionally, Puuilo opened stores in Tampere
Lahdesjärvi and Oulu Karjasilta. In the last quarter, the company opened stores in Äänekoski and
Kirkkonummi. During the financial year 2025, Puuilo will open stores in Varkaus, Savonlinna, Lohja,
Mäntsälä, Jyväskylä Keljo, Iisalmi and Heinola. For the financial year 2026, Puuilo has announced a
store opening in Espoonlahti, with additional openings to be announced for the financial year 2026 as
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they are finalised. According to the Puuilo’s definition, a store is considered new during the year of
opening and the following financial year. Relocated stores are considered like-for-like stores.
On 31 January 2025, Puuilo had a total of 49 stores (42 stores) across Finland. The current store
network is young, approximately half of the stores have been opened during the last five years.
Financial development
Seasonality
Puuilo’s business is, in part, seasonal in nature. As such, there are seasonal peaks in Puuilo’s net sales,
operating result, and cash flows, although seasonal dependence is relatively low compared to the retail
sector in general. Historically, Puuilo’s most important seasons in terms of net sales have been the
second and third quarter of each financial year. Additionally, Puuilo’s net sales are partly impacted by
exceptional, harsh, or seasonally atypical weather.
Net sales, result and profitability
In financial year 2024, Puuilo's net sales increased by 13.3% (+14.2%) to EUR 383.4 million (338.4).
Net sales of Puuilo's stores were EUR 374.4 million (329.5) and net sales of the online store were EUR
9.1 million (8.9), which corresponded to 2.4% (2.6%) of net sales. Like-for-like store net sales increased
by 1.5% (+5.2%). Online store net sales increased by 1.7% (-11.2%).
The development of net sales was positively impacted by the increase in net sales of both new and like-
for-like stores. Customer traffic continued to increase also in like-for-like stores. The growth of like-for-
like store net sales was slowed down by the decrease in average basket size.
Puuilo's gross profit was EUR 144.6 million (123.9) and the gross margin was 37.7% (36.6%). The
increase in gross margin was driven by a change in the sales mix and growth in the share of private
label products. The share of private label products in net sales increased significantly and was 21.7%
(20.6%). Additionally, the expansion of the store network has led to an increase in purchase volumes,
which has had a positive impact on purchasing terms.
Operating expenses were EUR 61.0 million (56.3), which corresponds to 15.9% of net sales (16.6%).
The most significant item in operating expenses was personnel expenses. Personnel expenses were
EUR 38.5 million (35.4), which corresponds to 10.0% (10.4%) of net sales. The increase in personnel
costs was mainly due to new stores.
Adjusted EBITA as well as EBITA were EUR 67.0 million (54.1), which corresponds to 17.5% (16.0%)
of net sales. Adjusted EBITA increased by 23.8% compared to the previous year. There were no items
affecting comparability.
Operating profit was EUR 65.1 million (52.8), which corresponds to an EBIT margin of 17.0% (15.6%).
Net financial expenses were EUR -5.2 million (-4.4). Net financial expenses excluding the effect of IFRS
16 were EUR -2.3 million (-2.4).
Profit before taxes was EUR 59.9 million (48.4). Total income taxes were EUR 12.0 million (9.7). The
net result was EUR 47.9 million (38.7) and earnings per share were EUR 0.57 (0.46).
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Balance sheet, financing and cash flow
At the end of the financial year, Puuilo's inventories were EUR 115.5 million (93.1). The increase in
inventories was due to the opening of seven new stores and private label inventories of five stores
opening during the spring 2025. Additionally, the import volume of private label products increased as
planned and the company also prepared for adequacy of products in anticipation of possible supply
chain disturbances. All of these factors contributed to the increase in inventory value. However, our aim
is to further improve inventory turnover.
Operating free cash flow was EUR 44.0 million (54.8). Operating free cash flow was supported by strong
operating profit. However, inventories increased for the above-mentioned reasons and cash flow also
reflects items related to the Hurrikaani arrangement. The operating free cash flow for the comparison
period was positively impacted by the normalisation of excess inventories.
At the end of the financial year cash and cash equivalents were EUR 18.3 million (21.5) and the
company’s financial position is stable.
At the end of the financial year, Puuilo's interest-bearing liabilities totalled EUR 133.1 million (122.8), of
which non-current financial loans amounted to EUR 50.0 million (50.0). The Group did not have any
current financial loans at the end of the financial year (-). Other interest-bearing liabilities consisted of
lease liabilities reported in accordance with IFRS 16. At the end of the financial year, the ratio of net
debt to adjusted EBITDA was 1.4 (1.5), which is in line with the long-term target. The ratio of net debt
to adjusted EBITDA excluding the impact of IFRS 16 was 0.5 (0.5). Net debt excluding the impact of
IFRS 16 was approximately EUR 31.7 million (28.5).
Investments
Puuilo's investments were EUR 7.1 million (4.7). Investments were mainly related to the acquisition of
Hurrikaani store chain and the furnishing of new stores. Comparison period investments were mainly
related to furnishing of new stores and to development of IT-systems.
Personnel
The number of personnel converted into full-time employees (FTE) was 849 (791). The average number
of personnel was 1,005 (938). Personnel expenses were EUR 38.5 million (35.4).
Shares and shareholders
Share information and share trading
Puuilo Plc has one class of shares. Each share carries one vote at the company's Annual General
Meeting. The shares have no nominal value. Puuilo Plc's share capital was EUR 80,000 at the end of
the reporting period and the company had 84,776,953 shares.
On the last trading day of the
financial year, 31 January 2025, the closing price of the share was
EUR 10.23. The share turnover during the reporting period was EUR 244 million and 25,139,636 shares.
The highest intra-day share price during the financial year was EUR 10.90 and the lowest intra-day price
was EUR 8.50. At the end of the
financial year, the market value of the shares was EUR 862 million.
The company held 555,000 treasury shares at the end of the reporting period.
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Further information on Puuilo's shares and shareholders is available on the investor website at
www.investors.puuilo.fi/en/investors/share_information/shareholders and on the management’s
holdings at https://www.investors.puuilo.fi/en/investors/share_information/management_shareholding.
Shareholders
At the end of the financial year, Puuilo had 32 948 registered shareholders.
Puuilo has through a flagging notification in August 2022 from The Capital Group Companies, Inc, been
informed that the company’s indirect holdings are 10.03% of Puuilo’s shares.
Puuilo has through a flagging notification in September 2023 from Ampfield Management LP, Inc, been
informed that the company’s indirect holdings are 10.11% of Puuilo’s shares.
Major shareholders on 31 January 2025
Number of shares
% of shares
1. Tuomaala Markku
4,112,069
4.85%
2. Keskinäinen Eläkevakuutusyhtiö Ilmarinen
1,814,000
2.14%
3. Elo Keskinäinen Työeläkevakuutusyhtiö
1,704,000
2.01%
4. Evli Finnish Small Cap Fund
1,484,000
1.75%
5. Danske Invest Finnish Equity Fund
1,437,005
1.70%
6. Evli Finland Select Fund
1,365,000
1.61%
7. Säästöpankki Kotimaa-Sijoitusrahasto
888,114
1.05%
8. Op-Suomi -Sijoitusrahasto
695,446
0.82%
9. Tuomaala Henri Aleksi
648,653
0.77%
10. Op-Henkivakuutus Oy
600,869
0.71%
10 largest total
14,749,156
17.40%
100 largest total
24,012,915
28.32%
Nominee registered total
49,372,480
58.24%
Total
84,776,953
100.00%
Ownership structure on 31 January 2025
Number of shares
% of shares
Private Individuals
17,335,946
20.45%
Pension & Insurance
5,109,202
6.03%
Companies
4,924,907
5.81%
Fund company
3,795,202
4.48%
Others
3,690,803
4.35%
Foundation
548,413
0.65%
Total
35,404,473
41.76%
Nominee registered
49,372,480
58.24%
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Breakdown by size of holding on 31 January 2025
Number of shares
Number of
shareholders
% of shareholders
Number of shares
% of shares
0-100
15,584
47.30%
753,542
0.89%
101-500
12,225
37.10%
2,984,170
3.52%
501-1,000
2,944
8.94%
2,207,281
2.60%
1,001-5,000
1,887
5.73%
3,754,061
4.43%
5,001-10,000
147
0.45%
1,026,961
1.21%
10,001-50,000
107
0.32%
2,299,113
2.71%
50,001-100,000
7
0.02%
498,312
0.59%
100,001-
37
0.11%
21,881,033
25.81%
Nominee registered
10
0.03%
49,372,480
58.24%
Total
32,948
100.00%
84,776,953
100.00%
Management shareholding
On 31 January 2025, Puuilo Plc’s Board members and the CEO owned a total of 234,111 Puuilo Plc’s
shares, which corresponds to 0.28% of the company’s shares and votes.
On 31 January 2025, the CEO had 201,220 Puuilo Plc’s shares, which corresponded to 0.24% of the
company’s shares and votes. On 31 January 2025, Puuilo Plc’s Management Team incl. CEO owned
632,694 Puuilo Plc’s shares, which corresponded to 0.75% of the company’s shares and votes.
Flagging notifications
During the financial year, Puuilo received the following shareholder flagging notifications in accordance
with the Finnish Securities Markets Act:
• On 9 February 2024, Puuilo received a notification in accordance with the Chapter 9, Section 5
of the Finnish Securities Market Act from Evli Plc. According to the notification Evli Rahastoyhtiöt
Ltd’s ("Evli") (100% owned by Evli Plc) direct holding of the shares and votes of the Company
has decreased below the 5% threshold and was 4,94%.
• On 2 January 2025, Puuilo received a notification in accordance with the Chapter 9, Section 5
of the Finnish Securities Market Act from Markku Tuomaala. According to the notification Markku
Tuomaala’s direct holding of the shares and votes of the Company has decreased below the 5%
threshold and was 4,85%.
Further information on Puuilo's shares and shareholders is available on the investor website at
www.investors.puuilo.fi/en/investors/share_information/shareholders and on the management’s
holdings at https://www.investors.puuilo.fi/en/investors/share_information/management_shareholding.
Risks and business uncertainties
Puuilo Group's risk management is based on the risk management policy approved by the Board of
Directors. The purpose of the risk management policy is to define the framework, processes,
governance and responsibilities of risk management in Puuilo.
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The primary objective of risk management in Puuilo is to support the company’s strategy execution,
continuity of operations and realization of business objectives by anticipating any risks involved in the
company’s operations and managing them in a proactive manner. Enterprise risk management
emphasizes the role of corporate culture and is an integrated part of Puuilo’s operations, planning and
decision-making.
The Board of Directors is responsible for monitoring and ensuring that the Puuilo’s risk management
process functions are comprehensive. The Board defines the risk appetite and tolerance, according to
the current conditions. The Board of Directors is also responsible for approving enterprise risk
management related company policies. Puuilo’s operative management is responsible for achieving the
set objectives and controlling, managing, and mitigating risks that threaten them. The operative
management is also responsible for the risk management work, and for ensuring the performance of
the risk management process and the availability of sufficient resources.
Risks are assessed regularly and managed comprehensively. The Group's risk map and the most
significant risks and uncertainties are regularly reported to Puuilo's Board of Directors, whereas the most
significant risks and uncertainties are reported to the market in the report of the Board of Directors and
significant changes within them are reported in the business reviews and half-year reports.
Most significant risks and uncertainties in Puuilo
The activities of competitors and the entry of new competitors
The Finnish retail market is competitive, so the actions of competitors and the entry of new competitors
may affect Puuilo's position in the market.
It is possible to react to the various actions of competitors through marketing, pricing, and assortment
management, as well as through a rapid expansion of our store network. In addition, risk is managed
by actively monitoring competitors and evaluating their actions.
Changes in purchase power and customer behaviour
Changes in purchase power and consumer behaviour may occur due to factors such as the general
economic situation, confidence in the economy, employment rate, inflation, energy prices, and interest
rates.
Puuilo strives to influence consumer behaviour through advertising, as well as to maintain a favourable
price image and careful pricing decisions.
Pricing Strategy
Puuilo is a discount store, and price level is important to Puuilo’s customers. Too high price level can
lead to a deterioration in price perception and a decline in sales.
Puuilo actively monitors prices, and sales pricing is managed through a clear pricing strategy.
Industrial disputes
Potential industrial disputes can have an impact on Puuilo's operations and cause disruptions in, for
example, supply chains and store operations.
Puuilo manages the risk by monitoring the situation and preparing for possible exceptional situations.
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Implementation of Relex
The company has implemented a replenishment order system, and its failure could lead to stock
shortages or excessive inventory levels.
The risk is mitigated by closely monitoring inventory levels and system parameters.
Slowdown of product assortment development
The development of the company's product assortment may lag behind competitors, and emerging
trends may not be identified. In addition, the attractiveness of the assortment may decrease among
customers.
Puuilo manages risk by actively monitoring the operating environment and its changes, and open-
mindedly experiments with new trends.
Risks Related to China
A significant portion of products procured by Puuilo and its suppliers originates from China. Any
significant changes in the Chinese supplier environment or supply chain could result in risks for Puuilo.
The risk related to China can be mitigated by monitoring the situation and increasing the number of
procurement countries.
Geopolitical Risks
The war in Ukraine and other geopolitical tensions have caused significant uncertainty in Europe and
increased security policy tensions. The potential escalation of conflicts could lead to significant changes
in the supplier environment, affecting Puuilo’s supply chains and increasing procurement costs. The
geopolitical situation and its indirect market impacts may increase customer price sensitivity.
Puuilo aims to manage risk by monitoring the situation and reacting proactively to changes. Additionally,
efforts are made to geographically diversify the supplier chain.
Product safety
A failure in product safety control or in the quality assurance of the supply chain could result in financial
losses, the loss of customer trust or reputation, or in the worst case, endanger the health of customers.
The company manages the risk primarily through careful supplier selection, which includes reviewing
suppliers' product safety and quality documentation and customer references. In addition, the company
manages product risk by requiring independent laboratory verification of product safety for higher-risk
products.
Key personnel risks
Failure in recruiting or retaining management and other key personnel may adversely affect Puuilo.
The company manages the risk by striving to improve the employer image, by focusing on the quality of
supervisory work, through incentive programs, and by offering meaningful tasks. In addition, recruitment
processes are carried out carefully and suitability assessments are used.
15
Failure and quality problems of products imported by Puuilo
Products imported by Puuilo may have quality problems, which may have negative impact on the
reputation of private label products and among customers. In addition, the expansion and development
of the assortment of private label products may have adverse impact on other supplier relations.
The risk is mitigated by private label product quality control and active selection management.
Cybersecurity
Despite technical and administrative protective measures, Puuilo’s IT systems can be attacked. If the
intrusion is not detected, it results in a data breach or denial of service. Additionally, the staff's insufficient
knowledge and skills in data protection and handling can lead to information falling into the wrong hands.
Practices, documentation, and guidelines related to cybersecurity are continuously developed. The risk
is also mitigated by regularly training the employees.
Disruptions in supply chains
Disruptions in the company's warehousing and logistics chain of suppliers or its own stores as well as
possible strikes in the logistics sector may have an adverse effect on Puuilo's business, financial
position, profit, and cash flows.
Puuilo manages the risk by decentralizing the supply chain and maintaining inventory levels in stores
and central warehouses at an adequate level.
Slowdown of online sales growth
Puuilo’s online sales may slowdown.
The online shopping experience can be improved among other things by developing delivery times,
payment methods and delivery methods, to ensure that the growth of e-commerce does not stall. In
addition, marketing methods can be used to increase sales.
The general principles of Puuilo's risk management are also described on the investor website at
https://www.investors.puuilo.fi/en/investors/corporate_governance/risk_management.
Decisions by the Annual General Meeting and the Board of Director’s organisation meeting
Puuilo Plc’s Annual General Meeting was held on 15 May 2024 in Vantaa, Finland. The Annual General
Meeting adopted the Company's annual accounts and the consolidated financial statements for the
financial year 1 February 2023 – 31 January 2024, discharged the persons who have acted as members
of the Company’s Board of Directors and as CEO from liability and approved all proposals made to the
Annual General Meeting by the Board of Directors and the Shareholders’ Nomination Board.
Dividend
The Annual General Meeting resolved that an aggregate dividend of EUR 0.38 per share be paid based
on the balance sheet adopted for the financial year ended on 31 January 2024. The dividend was paid
in two instalments of EUR 0.19 per share. The record date of the first dividend instalment was 22 May
2024 and the pay date was 29 May 2024. The record date of the second dividend instalment was 17
16
October 2024 and the pay date 24 October 2024. The Board was authorized to decide, if necessary, on
new dividend payment record date and pay date for the second instalment, if the rules and statutes of
the Finnish book-entry system change or otherwise so require. The remaining distributable assets will
remain in equity.
Composition of the Board of Directors
The number of members of the Board of Directors was confirmed to as six (6). Lasse Aho, Bent Holm,
Mammu Kaario and Tuomas Piirtola were re-elected, and Jens Joller and Anne-Mari Paapio were
elected as new members of the Board of Directors for a term ending at the end of the next Annual
General Meeting.
The Annual General Meeting elected Lasse Aho as the Chairman of the Board of Directors.
Remuneration of the members of the Board of Directors
The Annual General Meeting resolved that the annual remuneration to the members of the Board of
Directors will be paid as follows: to the Chairman of the Board of Directors EUR 60,000 and to the other
members EUR 30,000 each. In addition, the Annual General Meeting resolved that the annual
remuneration to the members of the Audit Committee will be paid as follows: to the Chairman of the
Audit Committee EUR 5,000 and to the other members of the Audit Committee EUR 2,500.
Auditor
PricewaterhouseCoopers Oy, a firm of authorized public accountants, was re-elected as auditor of the
Company for the financial year 1 February 2024 – 31 January 2025. Mikko Nieminen, APA, acted as
the auditor with principal responsibility.
The auditor’s remuneration is paid against an invoice approved by the Company.
Authorization for the Board of Directors to resolve on the repurchase and/or on the acceptance as pledge of the Company’s
own shares
The Annual General Meeting authorized the Board of Directors to resolve on the repurchase and/or on
the acceptance as pledge of an aggregate maximum of 8,477,695 Company's own shares provided,
however, that the number of shares held by the Company at any time does not exceed 10 per cent of
the total number of shares in the Company. Own shares can be repurchased only using the unrestricted
equity of the Company at a price formed in public trading on the date of the repurchase or otherwise at
a price determined by the markets. The Board of Directors decides on all other matters related to the
repurchase and/or on the acceptance as pledge of own shares. Own shares can be repurchased using,
inter alia, derivatives. Own shares can be repurchased otherwise than in proportion to the shareholdings
of the shareholders (directed repurchase). The authorization cancels the authorization granted on 16
May 2023 to decide on the repurchase of the Company’s own shares. The authorization is effective until
the beginning of the next Annual General Meeting, however, no longer than until 31 July 2025.
17
Authorization for the Board of Directors to decide on the issuance of shares as well as the issuance of special rights entitling
to shares
The Annual General Meeting decided to authorize the Board of Directors to resolve on the issuance of
shares and the issuance of special rights entitling to shares. The aggregate number of new shares to
be issued may not exceed 8,477,695 shares, which corresponds to approximately 10 per cent of all the
shares in the Company. The Board of Directors decides on all other conditions of the issuance of shares
and of special rights entitling to shares. The issuance of shares and of special rights entitling to shares
may be carried out in deviation from the shareholders' pre-emptive rights (directed issue). The
authorization cancels the authorization granted on 16 May 2023 to decide on the repurchase of the
Company’s own shares. The authorization is effective until the beginning of the next Annual General
Meeting, however, no longer than until 31 July 2025.
Authorizing the Board of Directors to resolve on donations for charitable purposes
The Annual General Meeting resolved to authorize the Board of Directors to resolve on donations for
charitable or corresponding purposes in a total maximum of EUR 50,000. The Board of Directors was
authorized to decide on the donation recipients, purposes of use and other terms of the donations. The
authorization was proposed to remain effective until the end of the Annual General Meeting 2025,
however, no longer than for a period of 18 months from the date of the resolution of the Annual General
Meeting.
Antti Ihamuotila, attorney-at-law, chaired the meeting.
The minutes of the Annual General Meeting is available on the Puuilo investor website at
www.investors.puuilo.fi/en/corporate-governance/general-meeting.
Decisions by the Board of Director’s organisation meeting
The following members were elected to the Audit Committee: Mammu Kaario (Chair), Tuomas Piirtola
and Jens Joller.
Proposal for profit distribution
The Board of Directors of Puuilo Plc proposes for the Annual General Meeting to be held on 15 May
2025 that a dividend of total of EUR 0.70 per share be paid based on the balance sheet to be confirmed
for the financial year 1 February 2024 − 31 January 2025 on shares held outside the company. Of the
proposed dividend, EUR 0.46 will be distributed based on the financial year 2024 result and EUR 0.24
will be distributed as a special dividend. The remaining distributable assets will remain in equity. The
Board of Directors proposes that the dividend be paid in two instalments.
The first instalment, EUR 0.35 per share, will be paid to shareholders registered in the company’s
register of shareholders kept by Euroclear Finland Ltd on the instalment’s record date 26 May 2025.
The board proposes that the first dividend instalment payment date be 2 June 2025.
The second instalment, EUR 0.35 per share, will be paid to shareholders registered in the company’s
register of shareholders kept by Euroclear Finland Ltd on the instalment’s record date 16 October 2025.
The board proposes that the second instalment payment date be 23 October 2025. The Board proposes
it be authorised to decide, if necessary, on new dividend payment record dates and pay dates for the
18
second instalment, if the rules and statutes of the Finnish book-entry system change or otherwise so
require.
As at the date of the proposal for the distribution of profit, 26 March 2025, a total of 84,221,953 shares
were held outside the company, and the corresponding total amount of dividends was EUR
58,955,367.10.
The distributable assets of the Group’s parent company total EUR 134,624,715.28 which profit for the
financial year is EUR 50,176,011.13. The proposed dividend based on the financial year 2024
result corresponds to approximately 81% of Puuilo Group’s net income for the financial year.
Annual General Meeting
Puuilo’s Annual General Meeting will be held on 15 May 2025.
19
Key figures
EUR million
1 Feb 2024 -
31 Jan 2025
1 Feb 2023 -
31 Jan 2024
1 Feb 2022 -
31 Jan 2023
Net sales
383.4
338.4
296.4
Net sales development (%)
13.3%
14.2%
9.7%
Like-for-like store net sales development (%)
1.5%
5.2%
5.5%
Online store net sales development (%)
1.7%
-11.2%
3.9%
Gross profit
144.6
123.9
107.2
Gross margin (%)
37.7%
36.6%
36.2%
Adjusted EBITA*
67.0
54.1
48.8
Adjusted EBITA margin (%)*
17.5%
16.0%
16.5%
Adjusted EBITA* margin development (%)
23.8%
10.9%
0.7%
EBITA*
67.0
54.1
48.2
EBITA margin (%)*
17.5%
16.0%
16.2%
EBIT
65.1
52.8
47.0
EBIT margin (%)
17.0%
15.6%
15.9%
Net income
47.9
38.7
35.1
EPS (EUR)
0.57
0.46
0.41
EPS excl. listing expenses (EUR)
0.57
0.46
0.42
Dividend (EUR per share)
0.70**
0.38
0.34
Operating free cash flow
44.0
54.8
52.7
Net debt / adjusted EBITDA
1.4
1.5
1.5
Net debt / adjusted EBITDA excl. impact of IFRS 16
0.5
0.5
0.8
Number of stores (end of period)
49
42
37
Number of personnel converted into full-time employees
(FTE)
849
791
693
* Operating profit before the amortisation and impairment of intangible rights
** Proposal of Board of Directors
20
Calculation of alternative performance measures and other key figures
Puuilo uses alternative performance measures to reflect the changes in business performance and
profitability. These indicators should be examined together with the key performance indicators
compliant with IFRS Accounting Standards.
Like-for-like store net sales development is used to reflect the changes in Puuilo’s business volume
between periods. The indicator reflects the change in the net sales excluding the impact of new stores.
Like-for-like stores include the stores that have existed during both the review period and the comparison
period.
Adjusted profit and profitability indicators are used to improve the comparability of operational
performance between periods. Items affecting comparability include unusual material items outside the
ordinary course of the business such as listing expenses and business arrangements.
Alternative performance measures, adjusted for the effect of IFRS 16, are used to monitor the
achievement of financial targets. EBITDA excluding the effect of IFRS corresponds to EBITDA before
the adoption of IFRS 16.
In addition, financial performance indicators for the group have been presented as alternative
performance measures. The management uses these indicators to monitor and analyse business
performance, profitability, and financial position.
Key figure
Definition
Like-for-like store net sales
development (%)
Like-for-like store net sales development is calculated as the net sales
development of the
comparable stores that are not considered new or
closed stores.
A
store is considered a new store during the opening year and the
following
financial year after the opening. Relocated stores are considered
as like
-for-like stores.
Online net sales
development (%)
Change in online store net sales for the period divided by online store net
sales for the
previous period
Gross profit
Net sales – materials and services
Gross margin (%)
Gross profit as percentage of net sales
EBITA
Operating profit before amortisation and impairment of intangible rights
EBITA margin (%)
EBITA as percentage of net sales
Adjusted EBITA
EBITA adjusted with items affecting comparability
Adjusted EBITA development
(%)
Change in adjusted EBITA for the period divided by adjusted EBITA for the
previous period
Adjusted EBITA margin (%)
Adjusted EBITA as percentage of net sales
EBIT (operating profit)
Profit before income taxes and finance income and finance costs (operating
profit)
21
EBIT margin (%)
EBIT as percentage of net sales
Earnings per share
(basic)
(EUR)
Earnings per share have been calculated by dividing the profit for the period
according to the consolidated income statement by the weighted average
number of shares issued.
Earnings per share
(diluted)
(EUR)
Earnings per share have been calculated by dividing the profit for the period
according to the consolidated income statement by the weighted average
diluted number of shares issued.
Earnings per share excluding
listing expenses (EUR)
Earnings per share have been calculated by dividing the profit for the period
excluding the listing expenses recognised in profit and loss according to the
consolidated income statement by the weighted average number of shares
issued.
EBITDA
Operating profit before depreciation, amortisation, and impairment
Adjusted EBITDA
EBITDA before items affecting comparability
Operating free cash flow
Adjusted EBITDA – depreciation of right-of-use assets – change in net
working
capital in cash flow statement – net capital expenditure
Net debt / Adjusted EBITDA
Interest-bearing liabilities (loans from financial institutions + lease liabilities)
–
cash and cash equivalents divided by annualised adjusted EBITDA
Net debt / Adjusted
EBITDA
excl. IFRS 16
impact
Interest-bearing liabilities excluding IFRS 16 lease liabilities – cash and cash
equivalents divided by adjusted EBITDA
– lease expenses
22
Reconciliation of certain alternative performance measures
EUR million
1 Feb 2024 -
31 Jan 2025
1 Feb 2023 -
31 Jan 2024
1 Feb 2022 -
31 Jan 2023
Items affecting comparability
Strategic projects
-
-
0.1
Listing expenses
-
-
0.5
Items affecting comparability
-
-
0.6
Gross profit
Net sales
383.4
338.4
296.4
Materials and services
238.8
214.5
189.3
Gross profit
144.6
123.9
107.2
EBITA and adjusted EBITA
Operating profit
65.1
52.8
47.0
Amortisation and impairment of intangible rights
1.9
1.3
1.1
EBITA
67.0
54.1
48.2
Items affecting comparability
-
-
0.6
Adjusted EBITA
67.0
54.1
48.8
EBITDA and Adjusted EBITDA
Operating profit
65.1
52.8
47.0
Depreciation, amortisation and impairments
19.0
15.2
13.5
EBITDA
84.1
68.0
60.6
Items affecting comparability
-
-
0.6
Adjusted EBITDA
84.1
68.0
61.2
Operating free cash flow
Adjusted EBITDA
84.1
68.0
61.2
Net capital expenditure
-7.1
-4.7
-2.6
Depreciation on right-of-use assets
-14.8
-11.9
-9.8
Changes in working capital
-18.2
3.4
3.9
Operating free cash flow
44.0
54.8
52.7
Net debt / Adjusted EBITDA
Net debt
114.8
101.3
94.4
Adjusted EBITDA
84.1
68.0
61.2
Net debt / Adjusted EBITDA
1.4
1.5
1.5
Net debt / adj. EBITDA excl. impact of IFRS 16
Net debt
114.8
101.3
94.4
IFRS 16 lease liabilities
-83.1
-72.8
-53.4
Net debt excl. impact of IFRS 16
31.7
28.5
41.1
Adjusted EBITDA, rolling 12 mths
84.1
68.0
61.2
Rents from lease agreements, rolling 12 mths
-16.0
-12.3
-10.0
Adjusted EBITDA excl. impact of IFRS 16
68.1
55.7
51.2
Net debt / adj. EBITDA excl. impact of IFRS 16
0.5
0.5
0.8
23
Sustainability statement
Puuilo in Brief
Puuilo is a Finnish discount retail chain. The strongly growing chain had 49 stores in different parts of
Finland at the end of the financial year that ended on 31 January 2025. In addition, customers are served
through an online store. The product assortment includes building supplies, tools, HVAC and electrical
accessories, pet food and supplies, car accessories, groceries, household products, garden supplies,
free-time and other accessories as well as services. Puuilo is one of the leading discount retailers in
Finland and it serves both consumers and B2B customers in the repair and maintenance as well as
construction sector. The company is known for its affordable prices and extensive product assortment.
Puuilo Group’s parent company is Puuilo Plc, which is a Finnish public limited company established
under Finnish law. The company is headquartered in Helsinki, Finland. Puuilo Plc is listed on the Nasdaq
OMX Helsinki Stock Exchange.
General disclosures
Preparation basis
BP-1 General basis for preparation of the sustainability statement
Puuilo's sustainability report has been prepared for the financial year from February 1, 2024, to January
31, 2025. It covers the entire Puuilo group, including the parent company Puuilo Plc and its 100%-owned
subsidiary Puuilo Tavaratalot Oy. The scope of consolidation of the sustainability report is thus the same
as in the financial statements. The assessment of impacts, risks, and opportunities at the beginning and
end of the value chain has been included in the principles of action and attempts have been made to
include indicators as accurately as the availability of information on product groups allows.
The reported sustainability topics are based on the double materiality analysis conducted in 2024. The
sustainability statement has been prepared in accordance with Chapter 7 of the Finnish Accounting Act
and the European Sustainability Reporting Standards (ESRS). Puuilo uses the transitional rule of the
ESRS 1 General Requirements standard, which allows the company not to provide comparative data in
the sustainability statement for the first year of preparation according to the ESRS standards.
No information related to intellectual property, know-how, or results of innovation has been omitted from
the sustainability statement.
BP-2 Disclosures in relation to specific circumstances
The statement follows the time horizons of the ESRS.
The availability and quality of information related to the beginning and end of the value chain can cause
uncertainty in the reported data. The methods used in carbon footprint calculations and the uncertainties
and limitations related to data quality are detailed in section E1-6. The value chain information regarding
resource inflows in section E5-4 has been assessed using the company's internal data, as Puuilo does
not manufacture or further process products itself and does not have access to detailed information
about the value chain.
The reported metrics have been verified only by the verification service provider.
24
In its 2024 reporting, Puuilo uses the following transitional provisions in accordance with Appendix C of
ESRS 1:
• SBM-1 Strategy, business model and value chain: paragraph 40 (b) and (c)
• SBM-3 Material impacts, risks, and opportunities and their interaction with strategy and
business model: paragraph 48 (e)
• E1-9 Anticipated financial effects from material physical and transition risks and potential
climate-related opportunities
• E5-6 Anticipated financial effects from resource use and circular economy-related impacts,
risks and opportunities
• S1-13 Training and skills development
• S1-14 Health and safety: data points on the number of days lost due to work-related health
issues, injuries, accidents, fatalities, and occupational diseases
• S1-15 Work-life balance
The Sustainability Audit Firm PricewaterhouseCoopers Oy has issued the company with a third-party
sustainability reporting auditor’s limited assurance engagement on Puuilo’s sustainability statement in
accordance with ISAE 3000 (revised).
Governance
GOV-1, G1.GOV-1 The role of the administrative, management and supervisory bodies
Puuilo's Board of Directors consisted of six members during the reporting period. Members included
Lasse Aho (chairman), Tuomas Piirtola, Bent Holm, Mammu Kaario, Rasmus Molander (until May 15,
2024), Markku Tuomaala (until May 15, 2024), Jens Joller (from May 15, 2024), and Anne-Mari Paapio
(from May 15, 2024). Until May 15, 2024, the Board of Directors consisted of 83% men and 17% women.
From May 15, 2024, onwards, the ratio was 67% men and 33% women. Based on the independence
assessment, all members of the Board of Directors were independent of the company and significant
shareholders except for Jens Joller (from May 15, 2024) and Rasmus Molander (until May 15, 2024),
who were independent of the company but not significant shareholders. The gender ratio of the Board
of Directors was 1:5 until May 15, 2024, and 2:4 from May 15, 2024. The proportion of independent
Board members remained 83% throughout the financial year.
Puuilo’s management team was composed of seven members, all of whom participated in the
management of business operations: CEO Juha Saarela, CFO Ville Ranta, Marketing Director Perttu
Partanen, Purchasing and Logistics Director Markku Lampela, HR Director Sirkkaliisa Kulmala, Sales
Director Markus Kaatranen, and IT Director Juha Parviainen. The gender ratio of the management team
was 1:6 throughout the reporting period.
There are no employee representatives in the management team or the Board of Directors.
Board of Directors’ Responsibilities
Puuilo's Board of Directors oversees the company's operations and administration and decides on
significant matters related to the company's strategy, investments, organization, and financing. The
Board of Directors has general authority in all matters not explicitly assigned to other bodies or entities
by law or the company's articles of association. The responsibilities of the Board of Directors include
approving the financial statements and the report by the Board of Directors, including the sustainability
25
statement, as well as half-year and business reviews, deciding on strategically significant business
matters, confirming policies to be followed in the Puuilo group, and ensuring proper risk management
and internal audit arrangements. The Board of Directors also appoints the CEO and the management
team members and decides on the terms of their employment. The Board of Directors has prepared a
written rule for its operations defining its main duties and principles.
The audit committee members of the Board of Directors are Mammu Kaario (chair), Jens Joller (from
May 15, 2024), Tuomas Piirtola (from May 15, 2024), Rasmus Molander (until May 15, 2024), and
Markku Tuomaala (until May 15, 2024). The duties of the Audit Committee include overseeing financial
and sustainability reporting, risk management, the arrangement of audit and assurance of sustainability
reporting, internal audit, as well as matters related to compliance and governance. The committee does
not have independent decision-making power but prepares matters for decision by the Board of
Directors or the Annual General Meeting.
Members of the Board of Directors must have the required qualifications and expertise to perform their
duties. The Board of Directors collectively has sufficient knowledge and experience of Puuilo's business
environment, industry, and product range.
Management Team Responsibilities
The management team acts as the top operational decision-maker in the group. The management team
participates in key strategic and operational decision-making and is responsible for resource allocation
and performance assessment. The CEO serves as the chair of the management team. The
management team reports strategically significant issues to the Board of Directors and prepares matters
that fall under the Board of Directors’ decision-making authority.
The management team members are responsible, among other duties, for Puuilo's sustainability efforts.
The CEO is responsible for overall sustainability, including economic, environmental, and social
responsibility. The Purchasing and Logistics Director is responsible for the supply chain (product
responsibility, logistics, and value chain employees), and the HR Director is responsible for social
responsibility regarding the company's own workforce. The CFO is responsible for administration and
reporting.
The management team has access to Puuilo’s internal sustainability expertise, and external experts are
consulted when necessary.
The same control measures and procedures used in other company operations are applied to manage
sustainability impacts, risks, and opportunities. These are integrated into internal control processes. The
management team is responsible for ensuring that risk management and internal control are organized
appropriately.
GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative,
management and supervisory bodies
The management team regularly addresses sustainability topics related to its own workforce.
Additionally, management monitors the development of sustainability metrics. During the reporting
period, the management team and the Board of Directors closely followed preparations for meeting
sustainability reporting obligations.
The management team has participated in identifying impacts, risks and opportunities, as well as in the
assessment of double materiality. The assessment of material impacts has also included the
implementation of a due diligence process, in accordance with the UN Guiding Principles on Business
26
and Human Rights and the OECD Guidelines for Multinational Enterprises, to identify adverse impacts
on people and the environment.
The results of the double materiality analysis were reported to the audit committee and the Board of
Directors. The Board of Directors has approved the analysis.
Metrics and targets for Puuilo's strategy have been created and integrated into the company's regular
financial reporting. Strategically significant sustainability metrics are reported to the management team
and the Board of Directors either semi-annually or annually, depending on the metric.
The Board of Directors regularly addresses personnel and data security matters. Emission data from
transportation is reported to the Board of Directors twice a year. The audit committee of the Board of
Directors addresses key sustainability issues twice a year.
Puuilo's sustainability statement is presented to the Board of Directors along with the financial
statements. The Board of Directors approves the sustainability statement as part of the report by the
Board of Directors.
GOV-3 Integration of sustainability-related performance in incentive schemes
Sustainability performance is not included in incentive systems.
GOV-4 Statement on due diligence
Core elements of due diligence
Paragraph in the sustainability
statement
a) Embedding due diligence in governance, strategy and
business mode
ESRS 2 GOV-2
ESRS 2 SBM-1, ESRS SBM-3
ESRS 2 IRO-1
b) Engaging with affected stakeholders in all key steps of the due
diligence
ESRS 2 SBM-2
S1-2
S4-2
G1-2
c) Identifying and assessing adverse impacts
ESRS 2 SBM-3
d) Taking actions to address those adverse impacts
E1-3, E5-2, S1-3, S1-4, S2-4, S4-3, S4-4
e) Tracking the effectiveness of these efforts and communicating
S1-5, S2-5, S4-5
GOV-5 Risk management and internal controls over sustainability reporting
Puuilo's sustainability reporting risk management follows the company's general risk management
approach. Puuilo group's risk management is guided by the risk management policy approved by the
Board of Directors. The policy aims to define the framework, processes, management, and
responsibilities of risk management at Puuilo.
The primary goal of risk management at Puuilo is to support the company's strategy, business continuity,
and achievement of business objectives by proactively identifying and managing risks related to the
company's operations. Comprehensive risk management emphasizes the role of corporate culture and
is integrated into Puuilo's business operations, planning, and decision-making.
27
The Board of Directors is responsible for overseeing and ensuring that the company's risk management
processes are comprehensive. The Board of Directors determines the risk appetite and tolerance
according to prevailing conditions. The Board of Directors is also responsible for approving company
policies related to risk management. Operational management is responsible for achieving set
objectives and controlling, managing, and mitigating risks that threaten them. Operational management
is also responsible for risk management work and ensuring the performance and availability of sufficient
resources for risk management.
Risks are regularly assessed and managed comprehensively. Puuilo's risk map and the most significant
risks and uncertainties are reported to the Board of Directors regularly. Significant risks and
uncertainties are reported to the market in the report by the Board of Directors and in interim and half-
year reviews.
Puuilo has defined roles and responsibilities for sustainability reporting. The finance department is
responsible for qualitative information in the report, which is based on interviews with responsible
persons or previous year's reporting when applicable. The responsible person for each area is involved
in validating the content.
The finance department collects quantitative information from responsible persons and combines the
data when necessary. The CFO is responsible for collecting, reporting, and publishing sustainability
information as part of the report by the Board of Directors.
Internal control of reporting is based on monitoring and controls through self-assessment, with the
results reported to the Board of Directors. Puuilo has no separate internal audit function. The finance
department is responsible for monitoring internal control. The Board of Directors may use internal or
external resources to conduct separate internal audits if necessary.
The audit committee monitors the preparation and progress of the report. The most significant identified
risks are related to estimating emissions and other primary data. Efforts are made to mitigate these risks
by developing data collection processes.
Strategy
SBM-1 Strategy, business model and value chain
Puuilo is a Finnish store chain founded in 1982, specializing in DIY, household goods, and pet products.
By the end of the financial year 2024, Puuilo had 49 stores in different parts of Finland and an online
store, which is an essential part of Puuilo's multichannel business model. Puuilo serves both private
customers and companies focused on maintenance, repair, or construction. Puuilo operates only
domestically.
Each store's product range is the same. It consists of ten main product groups: building supplies, tools,
HVAC and electrical accessories, pet food and supplies, car accessories, groceries, household products,
garden supplies, free-time and other accessories as well as services. The share of seasonal products
is small. The product range includes approximately 30,000 items.
The number of full-time employees in the group at the end of the reporting period was 849. All staff work
in Finland. The group's net sales was EUR 383.4 million.
Puuilo's sustainability theme for the strategy is "Responsible Retailer." The company's growth strategy
focuses on Puuilo's commercial strengths: low prices, a wide range of products, and an easy shopping
experience. The easy shopping experience and low prices directly link to consumers and end users. A
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wide and affordable product range is linked to essential environmental sustainability issues (circular
economy, climate change) and working conditions for value chain employees. The global supply chain
requires extensive logistics, includes several disposable products, and products that stand out for their
quality and durability. The competence of the staff is crucial in the shopping experience, as customers
often need help solving their problems.
Puuilo's sustainability strategy is divided into three areas: Responsible Supply Chain, Good Workplace,
and Environmental and Social Responsibility. Key goals include increasing the share of certified
suppliers, employee commitment and job satisfaction, and reducing the carbon footprint. These are
directly related to Puuilo's current services, markets, and customer groups. Key goals for customers and
investors are customer satisfaction and profitable business growth.
Puuilo's most significant production inputs are skilled personnel, products for sale, retail locations, and
necessary logistics services. Puuilo does not manufacture the products it sells but operates in the value
chain between manufacturers and business and consumer customers. Product manufacturing and
transportation are part of the value chain, while other production inputs are part of Puuilo's operations.
Puuilo ensures the availability of production inputs with a broad, decentralized network of suppliers.
Continuous improvement of staff skills is an essential part of ensuring and developing production inputs.
The beginning of the value chain includes manufacturing products for sale and acquiring raw materials
needed for production.
Special attention is paid to supplier selection, as the impacts of the global supply chain extend widely.
Puuilo has approximately 700 suppliers. About 80 percent of purchases are made from domestic
suppliers, while the remaining 20 percent are from Asia or other EU countries. Puuilo uses the amfori
BSCI system to verify the responsibility of the supply chain, and supplier commitment to it is part of the
supplier selection criteria. Puuilo's ethical guidelines for procurement are included in cooperation
agreements with all new suppliers and added to existing agreements when they are renewed. Risks
related to supply chain disruptions are managed by diversifying supply chains across different countries
and continents.
Puuilo's principle is to operate in rented premises rather than owning store premises. The owners of
store properties are among the most important business partners. Finding suitable rental spaces in
collaboration with property owners is a prerequisite for opening new stores.
Puuilo transports products to stores across Finland and imports products from Asia and Europe.
Logistics significantly impact both operational quality and the environment. Efforts are made to reduce
emissions from land, sea, and air transport in collaboration with logistics partners.
Strong and sustainable growth is possible only with skilled and motivated personnel. Puuilo aims to be
a good workplace where staff want to commit. Staff availability is promoted by offering stable and
permanent employment relationships, investing in the quality of management, and with commitment and
incentive programs.
Puuilo offers suppliers a growing distribution channel for their manufactured products and a long-term
business partnership.
At the end of the reporting period, Puuilo had 32,948 registered shareholders. They expect an attractive
return on their invested capital. Financiers expect Puuilo to act as a debtor accurately and reliably.
At the end of the value chain are Puuilo's consumer and business customers, the use of products, and
after use, recycling or final disposal.
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For its customers, Puuilo offers affordable prices, a wide range of products, and an easy shopping
experience. Through its business customers, Puuilo's value chain is connected to these clients and the
use of products in their business operations. The growth of e-commerce also increases product
deliveries to customers and the related logistics, along with environmental impacts.
Product durability enhances customer satisfaction. Reducing product complaints decreases related
transport emissions and waste volumes. The indirect benefits contribute to both environmental and
societal well-being.
SBM-2 Interests and views of stakeholders
Puuilo's key stakeholders are customers, analysts and investors, suppliers, and its own personnel.
These stakeholders have been widely consulted during the double materiality assessment by
conducting a stakeholder survey. The results of this survey were utilized in the materiality assessment.
In addition, the company conducts regular customer surveys and an annual employee satisfaction
survey. Active dialogue is maintained with investors and analysts, particularly in connection with
business reviews as well as investor and analyst meetings. The significance of suppliers to Puuilo's
business is very high, and communication with them is continuous. The methods of supplier cooperation
are described in more detail in disclosure requirement G1-2. Interaction and cooperation between
management and personnel are promoted through the cooperation negotiation committee and
continuous informal discussions between management and staff.
Furthermore, value chain workers have been identified as a significant stakeholder group that Puuilo's
operations impact considerably. Due to the nature of the supply chain and the geographical location of
suppliers, there is practically no interaction with value chain workers. Puuilo recognizes that its growth
strategy affects value chain workers. Potential negative impacts on them are sought to be mitigated by
developing supplier relationships, conducting country risk assessments, and increasing the proportion
of certified suppliers.
The purpose of stakeholder interaction is to understand the wishes and expectations of stakeholders
towards Puuilo. The needs and preferences of stakeholders, especially consumers, directly guide retail
operations. Stakeholders have been consulted through a survey conducted in connection with the
materiality analysis. The most important sustainability topics identified by stakeholders include
occupational well-being, health and safety, customer privacy and data security, as well as product
quality, longevity, reparability, and upgradability. Stakeholder views, including the respect for their
human rights, have been considered by analysing the results of the stakeholder survey and Puuilo's
current strategy. The analysis of the results did not reveal any need to change the company's strategy.
Puuilo's strategy aligns with the company's understanding of stakeholder views. Stakeholder
perspectives are taken into account in Puuilo's ways of working to support the implementation of the
company’s growth strategy.
The results of customer surveys and employee satisfaction surveys are regularly reviewed by the
management team. The Board of Directors reviews HR and marketing reports according to the annual
calendar, and significant findings are reported to the Board of Directors in connection with these reviews.
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
The material impacts on people and the environment associated with Puuilo's operations and business
relationships are typical for the retail sector. In line with its growth strategy, Puuilo is expanding its store
network, online store, and product range, and these factors are also reflected in the impacts, risks, and
opportunities identified in the double materiality assessment. The ability of Puuilo's strategy and
business model to address material impacts and risks or to leverage material opportunities is based on
30
a wide product range, an extensive supplier network, and a broad domestic store network. A separate
resilience analysis of the company's strategy and business model's climate resilience has not been
conducted.
Material impacts, risks, and opportunities have been identified in Puuilo's strategy and business model,
and no significant changes have been made to them. The strategy focuses on business growth and
profitability, which is enabled by the personnel. For the growth strategy, the quality and data security of
products must meet the expectations of customers and other stakeholders.
Regarding material risks and opportunities, no significant financial impacts on the company's financial
position, financial performance, or cash flows have been identified at this time. Sustainability-related
risks and opportunities are integrated into Puuilo Group's risk management process, and they are
managed with necessary measures. As a result of these actions, the company has not identified any
material risks or opportunities that would pose a significant risk of making material adjustments to related
financial statement items.
Material Environmental Impacts, Risks, and Opportunities
The most material environmental impacts are related to greenhouse gas emissions from the production
and logistics of the product range, the materials required for product manufacturing and packaging, as
well as the energy consumption, emissions, and waste from Puuilo's own operations. Positive
environmental impacts are sought by tightening procurement criteria, utilizing renewable energy,
switching to more environmentally friendly packaging materials, and improving the quality, reparability,
and longevity of the product range.
The material climate change-related risks for Puuilo are transition risks. Production costs may increase
due to stricter climate and other environmental regulations or taxation. It may not be possible to fully
pass on the cost increases to customer prices.
Stricter emission and other environmental regulations may indirectly or directly increase Puuilo's own or
the value chain's costs. Dependence on virgin raw materials may, in the long term, lead to supply chain
disruptions and a reduction in the product range if the availability of these raw materials decreases.
Puuilo can gain a competitive advantage by responding to potential customer demand for more
sustainable, recyclable, and low-emission products. Transitioning to cleaner energy sources is seen as
an opportunity that reduces uncertainties related to the price and availability of more polluting fossil
energy. Energy efficiency and waste minimization reduce costs.
The double materiality assessment did not identify any significant physical climate risks for Puuilo.
Puuilo's stores and offices are located in Finland, and the risks of extreme weather conditions affecting
them were assessed as relatively low. Disruptions affecting suppliers' production facilities and logistics
located abroad may impact Puuilo, but the knowledge base for a more detailed climate risk assessment
or resilience analysis is currently insufficient.
Material Impacts, Risks, and Opportunities Related to People and Society
The material impacts on customers are related to product safety and privacy, affecting all of Puuilo's
business and consumer customers and the end users of the products. Special requirements for
children's products have been taken into account. Potential individual product defects or misuse of
products can, in some cases, cause accidents. There are data security risks associated with online
payment transactions and the handling of other customer information.
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The identified material risks include product safety risks and potential costs associated with product
recalls. Positive impacts are related to product safety and quality, safety standards, and secure payment
methods and other data security measures. Key means to promote positive impacts include careful
supplier and product selection and managing data security risks. Investing in the safety of products and
services can strengthen the company's brand and reputation as a reliable operator, thereby increasing
customer loyalty and market share. Conversely, deficiencies in product safety or data security can cause
reputational damage and a decline in sales.
The material impacts, risks, and opportunities arise from Puuilo's business model, which offers a wide
range of products and customers pay for their purchases using electronic payment methods.
Permanent and secure employment relationships provide economic and mental benefits to the
personnel. An equal and fair workplace promotes job satisfaction. The company culture also reflects on
the customer experience. Negative impacts on the personnel can include occasional dissatisfaction with
working conditions or terms, or mental strain. The material impacts, risks, and opportunities related to
personnel are connected to Puuilo's growth strategy, as strong growth can, for example, reflect on the
mental strain of employees. Business growth and profitability are enabled by skilled and motivated
personnel, so material risks and opportunities depend on the company's own workforce.
Puuilo's employees are divided into permanent, fixed-term, and those working with variable hours, as
well as full-time and part-time employees. The material impacts, risks, and opportunities related to
personnel were found in the double materiality assessment to affect the entire workforce equally, and
no employee groups were identified as being at greater risk.
In Puuilo's strategy and business model, supply chains are global, and their upstream ends may be
located in countries at risk for human rights and fair working conditions. Operations may be linked to
forced labour, child labour, poor occupational safety, or otherwise inadequate working conditions. This
poses a reputational risk for Puuilo.
The double materiality assessment examined all employee groups in the value chain. The employees
to whom material sustainability impacts or risks apply in Puuilo's value chain are those working outside
the EU for Puuilo's suppliers. They work at the upstream end of the value chain in the production facilities
or logistics tasks of suppliers or their subcontractors and participate in the procurement, processing,
manufacturing, transportation, and other handling of goods. The material impacts and risks are related
to their working conditions and the realization of their human rights.
A significant portion of the products sold by Puuilo are manufactured in Asia. Some of the manufacturing
countries are classified as high-risk countries for working conditions and human rights according to the
amfori BSCI classification, where the risk of potential negative impacts is higher. The high-risk countries
from which purchases were made during the reporting period were China, India, Pakistan, Turkey, and
Vietnam. The potential negative impacts on employees are systemic.
Failure to monitor product safety or ensure the quality of the supply chain can lead to financial losses
and a decline in customer trust. Puuilo's reputation as an employer is linked to risks related to the
availability of labour and employee well-being. Deficiencies in occupational health and safety practices
could lead to increased sick leave, higher costs, and operational disruptions. The origin risks related to
the treatment of value chain workers can affect Puuilo's reputation and, consequently, its long-term
profitability.
Material Impacts, Risks, and Opportunities Related to Governance
Maintaining a safe and reliable product range, as well as a value-based corporate culture, strengthens
Puuilo's brand value for customers. Corporate culture and employee satisfaction enhance the employer
32
image and facilitate recruitment. Good supplier relationships strengthen the ability to ensure the financial
profitability of the business.
Material Environmental Impacts, Risks, and Opportunities
Sub-topic ESRS topic Description of impact, risk
or opportunity
Nature of
impact
Value chain Time
horizon
Climate change
mitigation
ESRS E1 Climate
change
GHG emissions from own
operations
Actual
negative
Own operations Short-term
Climate change
mitigation
ESRS E1 Climate
change
GHG emissions from product
transportation and other logistics
Actual
negative
Upstream Short-term
Climate change
mitigation
ESRS E1 Climate
change
GHG emissions from product
manufacturing
Actual
negative
Upstream
Medium-
term
Climate change
mitigation
ESRS E1 Climate
change
Increase in sustainable products
through portfolio expansion
Potential
positive
Upstream
Medium-
term
Climate change
mitigation
ESRS E1 Climate
change
Enhancing logistics and
packaging with more
environmentally friendly
packaging solutions
Potential
positive
Own operations
Medium-
term
Climate change
mitigation
ESRS E1 Climate
change
Increase in production costs due
to the transition to more
sustainable production
processes
Risk Upstream
Medium-
term
Climate change
mitigation
ESRS E1 Climate
change
Additional costs due to regulatory
changes and increased taxation
Risk Own operations
Medium-
term
Climate change
mitigation
ESRS E1 Climate
change
New markets and innovations
(products, services, business
models) related to climate
change challenges increase
market share
Opportunity Own operations
Medium-
term
Energy
ESRS E1 Climate
change
Energy use in own operations
(including energy consumption of
buildings)
Actual
negative
Own operations Short-term
Energy
ESRS E1 Climate
change
Use of low-emission energy in
own operations
Actual positive
Own operations Short-term
Energy
ESRS E1 Climate
change
Energy efficiency and the
savings brought by energy-
saving measures
Opportunity Own operations Long-term
Energy
ESRS E1 Climate
change
With the use of renewable
energy, dependence on
traditional energy sources
decreases, leading to potential
cost savings
Opportunity Own operations Long-term
Resources inflows,
including resource use
ESRS E5
Resource use
and circular
economy
Overconsumption and material
choices lead to the overuse of
natural resources
Potential
negative
Upstream
Medium-
term
Waste
ESRS E5
Resource use
and circular
economy
The negative environmental
impacts of waste, as well as
waste management and
transportation
Actual
negative
Own operations
and
downstream
Short-term
Outflows of resources
related to products
and services
ESRS E5
Resource use
and circular
Providing customers with high-
quality, durable, and repairable
products, as well as spare parts
Potential
positive
Own operations
Medium-
term
33
economy
Resource inflows,
including resource use
ESRS E5
Resource use
and circular
economy
The decreasing availability of raw
materials in the long-term
increase costs
Risk Upstream Long-term
Outflows of resources
related to products
and services
ESRS E5
Resource use
and circular
economy
New innovations and product
categories related to the circular
economy increase net sales
Opportunity Own operations
Medium-
term
Waste
ESRS E5
Circular economy
Minimizing waste management
costs
Opportunity Own operations
Medium-
term
Waste
ESRS E5
Circular economy
The harmful environmental
impacts of packaging materials
Potential
negative
Own operations
Medium-
term
Significant Impacts, Risks, and Opportunities Related to People and Society
Sub-topic ESRS topic
Description of impact,
risk or opportunity
Nature of
impact
Value chain
Time
horizon
Secure employment,
Working time, Adequate
wage, Social dialogue,
Freedom of association,
Collective bargaining, Work
life balance
ESRS S1
Own
workforce
Dissatisfaction with working
conditions, workload, and
financial challenges
Potential
negative
Own operations Medium-term
Secure employment
ESRS S1
Own
workforce
Offering permanent
employment to staff
Actual positive Own operations Short-term
Working time, Adequate
wage
ESRS S1
Own
workforce
High job satisfaction due to
good working conditions
Potential
positive
Own operations Medium-term
Working time, Adequate
wage
ESRS S1
Own
workforce
Decreased job satisfaction
leads to lower work
motivation, efficiency, and
commitment, which in turn
reduces productivity
Risk Own operations Medium-term
Secure employment,
Working time, Adequate
wage, Social dialogue,
Freedom of association,
Collective bargaining, Work
life balance
ESRS S1
Own
workforce
Recruitment challenges
caused by a poor employer
image reduce productivity
Risk Own operations Medium-term
Secure employment,
Training and skills
development
ESRS S1
Own
workforce
A high level of customer
service and employee
satisfaction, resulting from
staff retention, increases
market share and
productivity
Opportunity Own operations Medium-term
Secure employment,
Working time, Adequate
wage, Work life balance
ESRS S1
Own
workforce
Improved productivity and
strong workforce
availability
Opportunity Own operations Medium-term
Health and safety
ESRS S1
Own
workforce
Absences due to
occupational accidents,
health problems, or
employee well-being
challenges lead to
Risk Own operations Short-term
34
increased operational costs
Gender equality and equal
pay, Measures against
harassment in the
workplace, Diversity
ESRS S1
Own
workforce
Equality has positive
impacts on employee
competence, career
progression, and overall
well-being
Potential
positive
Own operations Short-term
Secure employment,
Working time, Adequate
wage, Social dialogue,
Freedom of association,
Collective bargaining, Work
life balance, Health and
safety
ESRS S2
Workers in the
value chain
Adverse working conditions
within the value chain and
their effects on individuals’
well-being and means of
livelihood
Potential
negative
Upstream Short-term
Secure employment,
Working time, Adequate
wage, Social dialogue,
Freedom of association,
Collective bargaining, Work
life balance, Health and
safety
ESRS S2
Workers in the
value chain
Poor labour conditions in
the supply chain pose a
reputational risk, potentially
resulting in financial
liabilities
Risk Upstream Medium-term
Health and safety
ESRS S2
Workers in the
value chain
Health problems and
occupational accidents
affecting employees
throughout the value chain
Potential
negative
Upstream Short-term
Child labour, Forced labour,
Adequate housing, Water
and sanitation, Privacy
ESRS S2
Workers in the
value chain
Serious human rights
violations and inhumane
living conditions within the
supply chain
Potential
negative
Upstream Short-term
Child labour, Forced labour,
Adequate housing, Water
and sanitation, Privacy
ESRS S2
Workers in the
value chain
Reputational risk arising
from severe human rights
abuses within the supply
chain, negatively affecting
market share
Risk Upstream Medium-term
Privacy
ESRS S4
Consumers
and end-users
Secure payment methods
and e-commerce security
Actual positive Downstream Short-term
Privacy
ESRS S4
Consumers
and end-users
Secure payment methods
and e-commerce security
Risk Downstream Short-term
Health and safety ESRS S4
Consumers
and end-users
Risks related to product
safety
Potential
negative
Downstream Short-term
Health and safety,
Protection of children
ESRS S4
Consumers
and end-users
Product safety standards
and the mitigation of
consumer risks, including
the protection of children
Actual positive Downstream Short-term
Health and safety
ESRS S4
Consumers
and end-users
Financial impact of product
recalls
Risk Downstream Short-term
Health and safety
ESRS S4
Consumers
and end-users
Strengthening the brand
through product safety,
increasing market share
Opportunity Own operations Medium-term
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Significant Impacts, Risks, and Opportunities Related to Governance
Sub-topic ESRS topic Description of impact,
risk or opportunity
Nature of
impact
Value chain Time
horizon
Corporate culture
ESRS G1
Business conduct
Poor customer service due to
weak organizational culture
Potential
negative
Own operations
Short-term
Corporate culture
ESRS G1
Business conduct
Employee satisfaction, overall
well-being, and organizational
commitment
Potential
positive
Own operations
Medium-term
Corporate culture
ESRS G1
Business conduct
A strong corporate culture
contributing to a positive brand
image and market share
growth
Opportunity
Own operations
Medium-term
Corporate culture
ESRS G1
Business conduct
A strong employer brand
enhances employee
engagement and contributes to
higher productivity
Opportunity
Own operations
Medium-term
Relationships with
suppliers
ESRS G1
Business conduct
Insufficient monitoring of the
value chain may lead to
adverse impacts on people
and the environment
Potential
negative
Own operations
Medium-term
Relationships with
suppliers
ESRS G1
Business conduct
Reputational risks arising from
adverse social and
environmental impacts in the
supply chain may weaken
market share
Risk
Own operations
Medium-term
Relationships with
suppliers
ESRS G1
Business conduct
Long-term partnerships
contributing to increased
efficiency
Opportunity
Own operations
Medium-term
Relationships with
suppliers
ESRS G1
Business conduct
Collaboration with suppliers
enables innovation and creates
opportunities for growth
Opportunity Own operations
Medium-term
Impact, risk, and opportunity management
IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities
Puuilo's material sustainability impacts, risks, and opportunities were identified and assessed during the
fall of 2023 and early 2024. The process consisted of three stages:
1. Understanding the context: background analysis and forming stakeholder understanding
2. Identifying and preliminarily assessing sustainability-related impacts, risks, and opportunities
3. Evaluating, analysing, and defining the materiality of identified impacts, risks, and opportunities,
and validating them
The process utilized a combination of research based on public and internal sources, stakeholder
surveys, personal technical materiality assessments, and working group meetings. Puuilo's
management team participated in the assessment in a validating role.
In the background analysis, the potential types of impacts, risks, and opportunities across Puuilo's entire
value chain were determined. The materials used included Puuilo's previous sustainability statement
and its background materials, customer and employee surveys, reports from peer companies, industry-
36
specific standard topic recommendations, and the stakeholder survey. Based on these, an
understanding of potentially material sustainability topics was formed. Themes that were not supported
by background material or stakeholder views were already excluded as non-material at this stage.
For each potentially material topic, relevant actual or potential negative and positive sustainability
impacts, as well as business risks and opportunities, were identified. These were identified at a general
level across Puuilo's entire value chain, without detailed analysis of individual operations, business
relationships, or geographical areas.
The identified impacts, risks, and opportunities were analysed in more detail and grouped according to
ESRS standards. At the same time, the views of key stakeholder representatives were also heard. In a
workshop with Puuilo's management and experts, the impacts, risks, and opportunities were refined and
prioritized.
In the prioritization, the severity of negative and positive impacts (scale, scope, and in the case of
negative impacts, also the irreversibility of the impact), the magnitude of the financial impacts of risks
and opportunities, and the likelihood of their occurrence were each assessed on a scale of 1–5. The
assessment was conducted over short, medium, and long-term periods.
Preliminary materiality values for impacts were calculated based on severity and likelihood scores for
each impact. Preliminary materiality values for risks and opportunities were calculated based on the
magnitude and likelihood scores of their associated financial impacts.
As a result of the assessments, the relative importance of all identified impacts, risks, and opportunities
was determined, with the median of the materiality values serving as the preliminary threshold for
materiality. The assessed impacts, risks, and opportunities were matched to the corresponding ESRS
sustainability topics for validation by Puuilo's management team. The sustainability topics deemed
material for reporting were determined based on the identified material impacts, risks, and opportunities.
The results of the double materiality assessment were reviewed by Puuilo's management team. In
accordance with the company's internal control principles, the audit committee has reviewed the double
materiality analysis, and the Board of Directors has approved it.
The responsibility for monitoring identified potential and actual impacts lies with the management of
each business unit.
The goal of risk management is to achieve a competitive advantage by reducing threats and increasing
opportunities. The roles in risk management have been defined and integrated into business operations,
planning, and decision-making. Identified material sustainability risks are included in the management
team's annual risk map update as part of the company's other risks. The entire company's risk map is
approved annually by the Board of Directors.
Identifying, assessing, and managing opportunities related to sustainability issues is part of business
management. Data collection and assessment related to changes in demand for different product
groups also cover sustainability issues and related opportunities, such as circular economy or energy
efficiency.
E1.IRO-1
Puuilo's climate impacts have been identified as part of the double materiality assessment. Greenhouse
gas emissions are generated in the value chain of the products sold, from production, logistics, and in
many cases also from use, as well as from Puuilo's own operations and the production of purchased
energy.
37
The assessment did not identify any material physical climate risks or transition risks. Even in the long
term, the risks of extreme weather conditions affecting stores located in Finland and their surrounding
areas are relatively small. Physical risks are more focused on suppliers' production facilities and logistics
centers and transport routes located abroad. Disruptions affecting these can impact the availability and
price of products for Puuilo.
A separate climate risk assessment or scenario analysis has not been conducted.
E2.IRO-1, E3.IRO-1, and E4.IRO-1
The thematic standards related to pollution (E2), water and marine resources (E3), and biodiversity and
ecosystems (E4) were not assessed as material for Puuilo's sustainability reporting in the double
materiality assessment.
The impacts, risks, and opportunities related to pollution, water and marine resources, and biodiversity
and ecosystems were evaluated based on the best available information without screening analyses.
Stakeholder views were surveyed as part of the double materiality assessment, which covered all
environmental topics of the ESRS standards. Physical, transition, or systemic risks related to biodiversity
and ecosystems were not separately assessed. Puuilo's stores are located in leased properties in urban
areas, and their impacts on the surrounding environment have been considered in zoning and building
permit processes. No need for measures related to biodiversity has been identified.
E5.IRO-1
The material impacts, risks, and opportunities related to resource use and circular economy have been
identified and assessed as part of Puuilo's double materiality assessment. The assessment considered
the main features of Puuilo's supply chain, product range, and waste management. A broad engagement
of domestic stakeholders was conducted during the double materiality assessment. However, it has not
yet been possible to hear the views of communities affected by the supply chains of the product range.
The identified material negative impacts include the effects on the sufficiency of natural resources and
other environmental impacts resulting from the use of virgin materials, mass production, and potentially
poor product quality. The production of packaging materials and low recycling rates are associated with
several negative environmental impacts. Excessive packaging and hard-to-recycle packaging materials
increase material consumption and waste.
Potential legislative changes affecting the products sold and their characteristics have been identified
as a material risk. This risk is generally mitigated by applicable transition periods, during which products
already in stock can be sold before the end of the transition period. Consumer preferences may change,
and on the other hand, it is possible to respond flexibly to changes in demand since there is no in-house
manufacturing.
Utilizing renewable and recyclable raw materials, as well as more sustainable and recyclable products,
are opportunities if demand starts to favour such products. Minimizing waste brings cost savings.
A broader transition to a circular economy does not pose a material risk, as its impacts are expected to
affect individual products or product groups, and Puuilo itself is not a manufacturer of products.
G1.IRO-1
The material impacts, risks, and opportunities related to governance have been identified and assessed
as part of Puuilo's double materiality assessment. The assessment considered Puuilo's operating
environment in Finland, global supply chains, and structures typical of the retail sector.
38
IRO-2 Disclosure requirements in ESRS covered by the undertaking’s sustainability statement
Puuilo reports the material sustainability topics identified in the double materiality assessment in
accordance with the standards ESRS E1, E5, S1, S2, S4, and G1, and additionally, general information
about the company according to the standard ESRS 2. The assessment process is described in section
IRO-1 of the report.
For each standard, the material information requirements have been reported as per the accompanying
table.
Standard
Disclosure requirement
Page
ESRS 2
BP-1 – General basis for preparation of the sustainability statement
24
BP-2 – Disclosures in relation to specific circumstances
24
GOV-1 – The role of the administrative, management and supervisory bodies
25
GOV-2 – Information provided to and sustainability matters addressed by the
administrative, management, and supervisory bodies
26
GOV-3 – Integration of sustainability-related performance in incentive schemes
27
GOV-4 – Statement on due diligence
27
GOV-5 - Risk management and internal controls over sustainability reporting
27
SBM-1 – Strategy, business model and value chain
28
SBM-2 – Interests and views of stakeholders
30
SBM-3 - Material impacts, risks, and opportunities and their interaction with strategy
and business model
30
IRO-1 - The identification and assessment of material impacts, risks, and
opportunities
36
IRO-2 – Disclosure requirements in ESRS covered by the sustainability statement
39
ESRS E1
ESRS 2 GOV-3 Integration of sustainability-related performance in incentive
schemes
27
E1-1 – Transition plan for climate change mitigation
50
ESRS 2 SBM-3 - Material impacts, risks and opportunities and their interaction with
strategy and business model
30
ESRS 2 IRO-1 – Description of the processes to identify and assess material
climate-related impacts, risks and opportunities
36
E1-2 – Policies related to climate change mitigation and adaptation
50
E1-3 – Actions and resources in relation to climate change policies
50
E1-4 – Targets related to climate change mitigation and adaptation
50
E1-5 – Energy consumption and mix
51
E1-6 – Gross scopes 1, 2, 3 and Total GHG emissions
51
ESRS E5
E5. IRO-1 Description of the processes to identify and assess material resource
use and circular economy-related impacts, risks and opportunities
36
E5-1 Policies related to resource use and circular economy
58
E5-2 Actions and resources related to resource use and circular economy
58
E5-3 Targets related to resource use and circular economy
59
E5-4 Resource inflows
59
E5-5- Resource outflows
59
ESRS S1
ESRS 2 SBM-2 – Interests and views of stakeholders
30
ESRS 2 SBM-3 - Material impacts, risks and opportunities and their interaction with
strategy and business model
30
S1-1 – Policies related to own workforce
61
S1-2 – Processes for engaging with own workers and workers’ representatives
about impacts
62
S1-3 – Processes to remediate negative impacts and channels for own workers to
raise concerns
63
S1-4 – Taking action on material impacts on own workforce, and approaches to
mitigating material risks and pursuing material opportunities related to own
workforce, and effectiveness of those actions
63
S1-5 – Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
65
S1-6 – Characteristics of the undertaking’s employees
65
39
S1-9 – Diversity metrics
67
S1-10 – Adequate wages
67
S1-14 – Health and safety metrics
67
S1-16 – Remuneration metrics (pay gap and total remuneration)
67
S1-17 – Incidents, complaints and severe human rights impacts
68
ESRS S2
SBM-2 Interests and views of stakeholders
30
SBM-3 Material impacts, risks and opportunities and their interaction with strategy
and business model
30
S2-1 Policies related to value chain workers
68
S2-2 Processes for engaging with value chain workers about impacts
68
S2-3 Processes to remediate negative impacts and channels for value chain
workers to raise concerns
69
S2-4 Taking action on material impacts on value chain workers, and approaches to
managing material risks and pursuing material opportunities related to value chain
workers, and effectiveness of those actions
69
S2-5 Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
69
ESRS S4
SBM-2 Interests and views of stakeholders
30
SBM-3 Material impacts, risks and opportunities and their interaction with strategy
and business model
30
S4-1 Policies related to consumers and end-users
70
S4-2 Processes for engaging with consumers and end-users about impacts
71
S4-3 Processes to remediate negative impacts and channels for consumers and
end-users to raise concerns
71
S4-4 Taking action on material impacts on consumers and end-users, and
approaches to managing material risks and pursuing material opportunities related
to consumers and end- users, and effectiveness of those actions
72
S4-5 Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
73
ESRS G1
ESRS 2 GOV-1 The role of the administrative, management and supervisory
bodies
25
G1-1 Business conduct policies and corporate culture
73
G1-2 Management of relationships with suppliers
75
G1-6 – Payment practices
76
List of Other Data Points Required by EU Legislation
Disclosure requirement and
related datapoint
SFDR
reference
Pillar 3
referenc
e
Benchmark
regulation
reference
EU climate
law
reference
Location in
the report
ESRS 2 GOV-1 Board's gender diversity
paragraph 21 (d)
X
X
General
disclosures
ESRS 2 GOV-1 Percentage of board
members who are independent
paragraph 21 (e)
X
General
disclosures
ESRS 2 GOV-4 Statement on due
diligence paragraph 30
X
General
disclosures
ESRS 2 SBM-1 Involvement in activities
related to fossil fuel activities paragraph
40 (d) i
X
X
X
Non-material
ESRS 2 SBM-1 Involvement in activities
related to chemical production paragraph
40 (d) ii
X
X
Non-material
40
ESRS 2 SBM-1 Involvement in activities
related to controversial weapons
paragraph 40 (d) iii
X
X
Non-material
ESRS 2 SBM-1 Involvement in activities
related to cultivation and production of
tobacco paragraph 40 (d) iv
X
Non-material
ESRS E1-1 Transition plan to reach
climate neutrality by 2050 paragraph 14
X
Environment
ESRS E1-1 Undertakings excluded from
Paris-aligned Benchmarks paragraph 16
(g)
X
X
Non-material
ESRS E1-4 GHG emission reduction
targets paragraph 34
X
X
X
Environment
ESRS E1-5 Energy consumption from
fossil sources disaggregated by sources
(only high climate impact sectors)
paragraph 38
X
Environment
ESRS E1-5 Energy consumption and
mix paragraph 37
X
Environment
ESRS E1-5 Energy intensity associated
with activities in high climate impact
sectors paragraphs 40 to 43
X
Environment
ESRS E1-6 Gross Scope 1, 2, 3 and
Total GHG emissions paragraph 44
X
X
X
Environment
ESRS E1-6 Gross GHG emissions
intensity paragraphs 53 to 55
X
X
X
Environment
ESRS E1-7 GHG removals and carbon
credits paragraph 56
X
Environment
ESRS E1-9 Exposure of the benchmark
portfolio to climate-related physical risks
paragraph 66
X
Non-material
ESRS E1-9 Disaggregation of monetary
amounts by acute and chronic physical
risk paragraph 66 (a),
ESRS E1-
9 Location of significant assets
at material physical risk paragraph 66 (c)
X
Non-material
ESRS E1-9 Breakdown of the carrying
value of its real estate assets by energy-
efficiency classes paragraph 67 (c)
X
Non-material
ESRS E1-9 Degree of exposure of the
portfolio to climate related opportunities
paragraph 69
X
Non-material
ESRS E2-4 Amount of each pollutant
listed in Annex II of the E- PRTR
Regulation (European Pollutant Release
and Transfer Register) emitted to air,
water and soil, paragraph 28
X
Non-material
ESRS E3-1 Water and marine resources
paragraph 9
X
Non-material
ESRS E3-1 Dedicated policy paragraph
13
X
Non-material
ESRS E3-1 Sustainable oceans and
seas paragraph 14
X
Non-material
41
ESRS E3-4 Total water recycled and
reused paragraph 28 (c)
X
Non-material
ESRS E3-4 Total water consumption in
m3 per net revenue on own operations
paragraph 29
X
Non-material
ESRS 2- IRO 1 - E4 paragraph 16 (a) i
X
Non-material
ESRS 2- IRO 1 - E4 paragraph 16 (b)
X
Non-material
ESRS 2- IRO 1 - E4 paragraph 16 (c)
X
Non-material
ESRS E4-2 Sustainable land /
agriculture practices or policies
paragraph 24 (b)
X
Non-material
ESRS E4-2 Sustainable oceans / seas
practices or policies paragraph 24 (c)
X
Non-material
ESRS E4-2 Policies to address
deforestation paragraph 24 (d)
X
Non-material
ESRS E5-5 Non-recycled waste
paragraph 37 (d)
X
Environment
ESRS E5-5 Hazardous waste and
radioactive waste paragraph 39
X
Environment
ESRS 2- SBM3 - S1 Risk of incidents of
forced labour paragraph 14 (f)
X
Non-material
ESRS 2- SBM3 - S1 Risk of incidents of
child labour paragraph 14 (g)
X
Non-material
ESRS S1-1 Human rights policy
commitments paragraph 20
X
Social
ESRS S1-1 Due diligence policies on
issues addressed by the fundamental
International Labour Organization
Conventions 1 to 8, paragraph 21
X
Social
ESRS S1-1 processes and measures for
preventing trafficking in human beings
paragraph 22
X
Social
ESRS S1-1 workplace accident
prevention policy or management system
paragraph 23
X
Social
ESRS S1-3 grievance/complaints
handling mechanisms paragraph 32 (c)
X
Social
ESRS S1-14 Number of fatalities and
number and rate of work-related
accidents paragraph 88 (b) and (c)
X
X
Social
ESRS S1-14 Number of days lost to
injuries, accidents, fatalities or illness
paragraph 88 (e)
X
Social
ESRS S1-16 Unadjusted gender pay
gap paragraph 97 (a)
X
X
Social
ESRS S1-16 Excessive CEO pay ratio
paragraph 97 (b)
X
Social
ESRS S1-17 Incidents of discrimination
paragraph 103 (a)
X
Social
42
ESRS S1-17 Non-respect of UNGPs on
Business and Human Rights and OECD
paragraph 104 (a)
X
X
Social
ESRS 2- SBM3 – S2 Significant risk of
child labour or forced labour in the value
chain paragraph 11 (b)
X
General
disclosures
ESRS S2-1 Human rights policy
commitments paragraph 17
X
Social
ESRS S2-1 Policies related to value
chain workers paragraph 18
X
Social
ESRS S2-1 Non-respect of UNGPs on
Business and Human Rights principles
and OECD guidelines paragraph 19
X
X
Social
ESRS S2-1 Due diligence policies on
issues addressed by the fundamental
International Labour Organization
Conventions 1 to 8, paragraph 19
X
Social
ESRS S2-4 Human rights issues and
incidents connected to its upstream and
downstream value chain paragraph 36
X
Social
ESRS S3-1 Human rights policy
commitments paragraph 16
X
Non-material
ESRS S3-1 non-respect of UNGPs on
Business and Human Rights, ILO
principles or and OECD guidelines
paragraph 17
X
X
Non-material
ESRS S3-4 Human rights issues and
incidents paragraph 36
X
Non-material
ESRS S4-1 Policies related to
consumers and end-users paragraph 16
X
Social
ESRS S4-1 Non-respect of UNGPs on
Business and Human Rights and OECD
guidelines paragraph 17
X
X
Social
ESRS S4-4 Human rights issues and
incidents paragraph 35
X
Social
ESRS G1-1 United Nations Convention
against Corruption paragraph 10 (b)
X
Governance
ESRS G1-1 Protection of whistleblowers
paragraph 10 (d)
X
Governance
ESRS G1-4 Fines for violation of anti-
corruption and antibribery laws
paragraph 24 (a)
X
X
Non-material
ESRS G1-4 Standards of anti-corruption
and anti-bribery paragraph 24 (b)
X
Non-material
43
Environment
EU Taxonomy
Puuilo reports information related to the EU Sustainable Finance Taxonomy in accordance with EU
Regulation 2020/852 and the requirements of the Finnish Accounting Act. The EU Taxonomy is a
classification system aimed at directing capital flows towards sustainable investments and facilitating
the achievement of a climate-neutral European Union by 2050. At this stage, the Taxonomy only
includes economic activities that can potentially have a significant impact on climate change mitigation
and adaptation. Activities typical of the retail sector are not currently specifically mentioned in the
classification system. The company's business consists of retail. The company has reviewed its
operations to identify activities eligible for and aligned with the classification system.
The majority of Puuilo's business activities do not fall within the scope of the Taxonomy. The company
has not identified any taxonomy-aligned net sales, capital expenditures (CapEx), or operating
expenditures (OpEx). The company has Taxonomy-eligible capital expenditures related to store
renovations and the transition to LED lighting. These capital expenditures are detailed in the
accompanying table. The performance indicators required by the Taxonomy Regulation for net sales,
CapEx, and OpEx are reported in their respective tables as defined in the regulation. The same IFRS-
compliant accounting principles applied in Puuilo's consolidated financial statements have been used in
the calculations.
Comparative information for the financial year 2023 is included as part of the tables of key figures for
net sales, CapEx, and OpEx in accordance with the Taxonomy Regulation. The comparative information
for the financial year 2023 has not been subject to assurance procedures by the sustainability reporting
auditor.
EU Taxonomy Key Figures
Puuilo presents the key figures for net sales, capital expenditures (CapEx), and operating expenditures
(OpEx) in accordance with the table defined in the taxonomy regulation for non-financial companies.
The key figure tables show the proportion of the group's net sales, CapEx, and OpEx derived from
economic activities aligned with the classification system.
Comparative information for the financial year 2023 is included as part of the tables of key figures for
net sales, CapEx, and OpEx in accordance with the Taxonomy Regulation.
Accounting policies
Net sales
Puuilo applies the same IFRS-compliant preparation principles for calculating the net sales key figure
as it applies in its consolidated financial statements. The net sales recognition principles of the financial
statements are presented in Note 2.1 of the consolidated financial statements. The total net sales used
in the calculation of the key figure is the net sales shown in the group's income statement. The company
has not identified any taxonomy-aligned or taxonomy-eligible net sales.
44
Capital Expenditures (CapEx)
The capital expenditures defined by the Taxonomy Regulation include additions to tangible and
intangible assets during the financial year before depreciation, impairments, and revaluations. The
company has not identified any capital expenditures in line with the Taxonomy. The company has
taxonomy-eligible capital expenditures related to the renovation of existing buildings and the installation
of energy efficiency equipment. Puuilo includes in the calculation of capital expenditures, in accordance
with the Taxonomy Regulation, investments in tangible and intangible assets and additions to right-of-
use assets recognized on the balance sheet based on lease agreements. Additions to intangible assets
are presented in Note 4.2 of the consolidated financial statements, additions to tangible assets in Note
4.3, and additions to right-of-use assets related to leases in Note 4.4.
The definition of capital expenditures in the Taxonomy Regulation differs from Puuilo's reported
investment key figure definition. According to Puuilo's definition, the investment key figure includes
investments in tangible and intangible assets. The key figure does not include additions to right-of-use
assets recognized on the balance sheet from lease agreements. Puuilo's investments in the financial
year 2024 were EUR 7.1 million (EUR 4.7 million). Additions to right-of-use assets were EUR 20.9 million
(EUR 20.6 million).
Operating Expenditures (OpEx)
The operating expenditures defined by the taxonomy regulation include direct non-capitalized costs
related to research and development, building renovations, maintenance and repairs, and all other direct
costs related to the maintenance of tangible fixed assets performed by the company or outsourced to a
third party, which are necessary to ensure the continuous and efficient operation of these assets.
The company has not identified any operating expenditures (OpEx) that are taxonomy-aligned or
taxonomy-eligible under the Taxonomy. In the group's income statement, the operating expenditures
defined by the Taxonomy Regulation are included in the other operating expenses related to property
maintenance, which amounted to EUR 4.9 million in the financial year 2024 (EUR 4.5 million). Other
operating expenses are detailed in Note 2.3 of the consolidated financial statements. In addition to costs
related to property maintenance and repairs, this figure includes costs related to heating, electricity,
water consumption, and waste management, which are not included in the taxonomy regulation's
definition of operating expenditures.
50
Financial year 2024
Economic Activities
Code
Turnover
Proportion of turnover, year 2024
Climate Change Mitigation
Climate Change Adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate Change Mitigation
Climate Change Adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum Safeguards
Proportion of Taxonomy-aligned (A.1.) or
-eligible (A.2.) turnover, year 2023
Category enabling activity
Category transitional activity
€ million %
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
0.0
0.0% 0.0%
0.0
0.0% 0.0%
0.0
0.0% 0.0%
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
0.0
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
0.0
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
383.4 100,0 %
383.4 100,0 %
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities
TOTAL
A.2 Taxonomy-eligible but not environmentally sustainable activities (not
Taxonomy-aligned activities)
Of which enabling
Of which transitional
Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned
activities) (A.2)
A. Turnover of Taxonomy-eligible activities (A.1+A.2)
Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1)
2024
Substantial contribution criteria
DNSH criteria (“Does Not Significantly Harm”)
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
46
Financial year 2024
Economic Activities
Code
CapEx
Proportion of CapEx, year 2024
Climate Change Mitigation
Climate Change Adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate Change Mitigation
Climate Change Adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum Safeguards
Proportion of Taxonomy-aligned (A.1.)
or -eligible (A.2.) CapEx, year 2023
Category enabling activity
Category transitional activity
€ million %
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
0.0
0.0% 0.0%
0.0
0.0% 0.0%
0.0
0.0% 0.0%
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
Renovation of existing buildings CCM 7.2 0.4 1.5% EL EL N/EL N/EL EL N/EL 1.2%
Installation, maintenance and repair of energy efficiency equipment CCM 7.3 0.2 0.6% EL EL N/EL N/EL N/EL N/EL 1.1%
0.6 2.1% 2.1% 0.0% 0.0% 0.0% 0.0% 0.0%
2.3%
0.6 2.1% 2.1%
0.0% 0.0% 0.0% 0.0% 0.0%
2.3%
27.4 97.9%
28.0 100.0%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities
TOTAL
A.2 Taxonomy-eligible but not environmentally sustainable activities (not
Taxonomy-aligned activities)
Of which enabling
Of which transitional
CapEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned
activities) (A.2)
A. CapEx of Taxonomy-eligible activities (A.1+A.2)
CapEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
2024
Substantial contribution criteria
DNSH criteria (“Does Not
Significantly Harm”)
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
47
Financial year 2024
Economic Activities
Code
OpEx
Proportion of OpEx, year
2024
Climate Change Mitigation
Climate Change Adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate Change Mitigation
Climate Change Adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum Safeguards
Proportion of Taxonomy-
aligned (A.1.) or -eligible
(A.2.) OpEx, year 2023
Category enabling activity
Category transitional activity
€ million %
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
0.0
0.0% 0.0%
0.0
0.0% 0.0%
0.0
0.0% 0.0%
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
0.0
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
0.0
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
4.9 100.0 %
4.9 100.0 %
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities
TOTAL
A.2 Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)
Of which enabling
Of which transitional
OpEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-
aligned activities) (A.2)
A. OpEx of Taxonomy-eligible activities (A.1+A.2)
OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)
2024
Substantial contribution criteria
DNSH criteria (“Does Not Significantly Harm”)
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
48
Nuclear and fossil gas related activities
Row Nuclear energy related activities
1
The undertaking carries out, funds or has exposures to research,
development, demonstration and deployment of innovative electricity
generation facilities that produce energy from nuclear processes with
minimal waste from the fuel cycle.
NO
2
The undertaking carries out, funds or has exposures to construction and safe
operation of new nuclear installations to produce electricity or process heat,
including for the purposes of district heating or industrial processes such as
hydrogen production, as well as their safety upgrades, using best available
technologies.
NO
3
The undertaking carries out, funds or has exposures to safe operation of
existing nuclear installations that produce electricity or process heat,
including for the purposes of district heating or industrial processes such as
hydrogen production from nuclear energy, as well as their safety upgrades.
NO
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or
operation of electricity generation facilities that produce electricity using
fossil gaseous fuels.
NO
5
The undertaking carries out, funds or has exposures to construction,
refurbishment, and operation of combined heat/cool and power generation
facilities using fossil gaseous fuels.
NO
6
The undertaking carries out, funds or has exposures to construction,
refurbishment and operation of heat generation facilities that produce
heat/cool using fossil gaseous fuels.
NO
50
ESRS E1 Climate Change
Governance
E1-1 – Transition plan for climate change mitigation
Puuilo does not currently have numerical climate targets or a transition plan. According to the preliminary
plan, the transition plan will be prepared during the financial year 2026.
Impact, risk and opportunity management
E1-2 – Policies related to climate change mitigation and adaptation
Puuilo aims to reduce its greenhouse gas emissions by focusing on energy efficiency and the climate
impacts of transportation and waste management. Puuilo has not developed a written climate policy or
commitments, nor policies related to energy efficiency or the adoption of renewable energy.
Puuilo assessed its current level of greenhouse gas emissions for the first time in 2024. Policies and
targets related to climate change and energy efficiency will be developed after assessing the current
situation. According to the preliminary plan, the climate policy will be prepared during the financial year
2025.
E1-3 – Actions and resources in relation to climate change policies
The key actions related to climate change mitigation focus on energy efficiency and energy choices.
Greenhouse gas emissions from logistics are mitigated by optimizing transportation. Emissions are
monitored using the emissions data provided by the most significant logistics partner.
During the reporting year, Puuilo procured electricity produced from renewable sources or nuclear power.
The company's own electricity procurement covers most of the stores, while in some locations, the store
property owner procures the electricity.
Opportunities for improving energy efficiency have been identified both in logistics optimization and in
optimizing store heating.
Greenhouse gas emissions from Puuilo's waste management are offset by purchasing permanent
carbon sinks from afforestation projects. The amount of emission offsets includes emissions from both
waste transportation and treatment. In 2024, the amount of emission offsets was 31 CO2 equivalent
tons.
Metrics and targets
E1-4 – Targets related to climate change mitigation and adaptation
Puuilo does not have numerical emission reduction targets due to the lack of a baseline. The carbon
footprint calculation for the year 2024 is the first to cover the group's scope 1, 2, and 3 emissions.
Targets will be set based on the emission data from 2024.
50
E1-5 – Energy consumption and energy mix
Energy consumption and energy mix 2024
Fuel consumption from coal and coal products (MWh) 0
Fuel consumption from crude oil and petroleum products
(MWh)
281.8
Fuel consumption from natural gas (MWh) 0
Fuel consumption from other fossil sources (MWh) 0
Consumption of purchased or acquired electricity, heat,
steam, and cooling from fossil sources (MWh)
3,149.2
Total fossil energy consumption (MWh) 3,431.0
Consumption from nuclear sources (MWh) 253.0
Fuel consumption for renewable sources (MWh) 11.3
Consumption of purchased or acquired electricity, heat,
steam, and cooling from renewable sources (MWh)
13,136.9
The consumption of self-generated non-fuel renewable
energy (MWh)
0
Total renewable energy consumption (MWh) 13,148.1
Total energy cunsumption (MWh) 16,832.2
The distribution of market-based purchased electricity has been calculated using data from 2023.
Energy intensity
Energy intensity 2024
Energy intensity from activities in high climate impact sectors based
on net sales (MWh/€ million)
43.90
Puuilo's business belongs to sectors with significant climate impacts (NACE main category G:
Wholesale and retail trade), so energy intensity has been calculated based on the group's total net sales.
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions
Retrospective
Year 2024
Scope 1 GHG emissions
Gross Scope 1 GHG emissions (tCO2eq) 68.4
Percentage of Scope 1 GHG emissions from regulated
emission trading schemes (%)
0
Scope 2 GHG emissions
Gross location-based Scope 2 GHG emissions (tCO2eq) 1,963.0
Gross market-based Scope 2 GHG emissions (tCO2eq) 1,428.1
Significant Scope 3 GHG emissions
Total Gross indirect (Scope 3) GHG emissions
(tCO2eq)
150,834.5
1 Purchased goods and services 144,271.4
51
2 Capital goods 1,137.,0
3 Fuel and energy-related Activities 609.3
4 Upstream transportation and distribution 3,394.6
5 Waste generated in operations 567.4
6 Business travel 87.8
7 Employee commuting 766.9
Total GHG emissions
Total GHG emissions (location- based) (tCO2eq) 152,865.9
Total GHG emissions (market- based) (tCO2eq) 152,331.0
Scope Tons of biogenic CO2e
Scope 1 3.0
There is not enough information available on biogenic CO2 for Scope 2 and 3.
GHG intensity per net sales
GHG intensity
2024
Total GHG emissions (location
-based) per net sales (tCO2eq/€ million) 398.7
Total GHG emissions (market
-based) per net sales (tCO2eq/ €million)
397.3
Greenhouse gas intensity is calculated based on the group's total net sales.
The methods used in the calculation of greenhouse gas emissions, as well as the uncertainties and
limitations related to the quality of the data, are detailed in the tables below.
Scope 1 and 2
Primary data
Methods, allocation
methodologies, or
assumptions
Uncertainties and limitations
in data quality
Sources of
emission
factors
Scope
1
• Fuel usage in
machinery and
vehicles
• Primary data was gathered
and reported using the
relevant emission factor.
• Average blend ratios for
gasoline and diesel were
applied.
• The exact biofuel blend ratio
is unknown; however, this
does not significantly impact
the overall results.
4
Scope
2
• Measured electricity
and heating
consumption
• Averages based on
measured heating
and electricity
consumption
• The primary data collected
was reported using the
corresponding emission
factor.
• The energy consumption of
the headquarters was
estimated based on floor
• The actual energy
consumption of the
company's electric vehicles is
unknown. This is not
estimated to have a
significant impact on the
results of the calculation.
Market-
based:
1,9,10,11,14
Location-
based:
2,6,7,13
52
• Office building floor
area (m
2
)
area. The energy
consumption reference used
was from Motiva statistics,
with an assumed room height
of 3.5 meters.
• For two of the company's
three electric vehicles, the
average distance driven
annually was estimated and
multiplied by the WLTP
consumption figures.
Market-based:
• Contract-based emission
factors were applied for
electricity at all sites where
the company holds its own
electricity contracts. Local
district heating providers'
emission factors were used
for heating. If the heating
provider was unknown, an
assumption was made
regarding the local district
heating supplier.
• Residual mix emission factors
were applied when the type of
electricity contract was
unknown.
Location-based:
• Country-specific emission
factors were applied to
purchased electricity and
heating.
• For purchased electricity,
emissions calculated using
the residual mix account for
100% of the total market-
based scope 2 emissions.
The emission factor for
electricity covered by Puuilo's
contractual agreements is 0
kgCO2e.
• For purchased heating, the
market-based emission factor
was assumed to be 82% of
the total scope 2 emissions.
This assumption has no
significant impact on the
results, regardless of the
share.
• The estimated energy
consumption at the
headquarters represents
2.9% of the total market-
based and 0.9% of the total
location-based scope 2
emissions.
• The share of purchased
electricity derived from
contract-based instruments is
86%.
• The share of purchased
heating derived from contract-
based instruments is 2%.
Scope 3
Primary data
Methods, allocation
methodologies, or
assumptions
Uncertainties and limitations
in data quality
Sources of
emission
factors
1. Purchased
goods and
services
• Mass of
products
purchased
• Volume of
purchased
water (m3)
• Calculated
averages based
on the volume
of purchased
water.
• Total
expenditure on
purchased
• Data was collected using a
hybrid approach, aiming to
move from the most
accurate applicable method
to the least accurate
• Some purchased
packaging materials and
water were collected on a
volumetric basis.
• For sites where measured
water consumption was not
available, the arithmetic
average consumption of
other stores was used.
• The volume-based emission
factors used for water and
packaging materials are
averages.
• The uncertainty level of euro-
based emission factors is
typically higher. The factors
are from 2021 and have
been inflation-adjusted for
2024.
• Certain accounts had to be
excluded from the calculation
as they contain distinct
products and/or services,
3, 8, 15
53
products or
services (€)
Data from the calendar
year 2024, which aligns
closely with consumption
during the financial period,
was used in the calculation.
• The consumption-based [€]
method was applied in
determining other
purchased products. Non-
resalable purchased
products (and services)
were categorized based on
accounting records, which
were refined where
necessary using invoice
data. Data on resalable
products was collected
based on purchase receipt
values and categorized
according to the available
emission factor categories.
and the emission factor
could not be determined.
Their contribution does not
materially affect the results
of the calculation.
2. Capital
goods
• Amount of
purchased
capital goods
(€)
The collected data has
been reported using a
euro-based emission
factor. The source data
has been categorized into
groups used in the
calculation based on
purchase invoices.
• The uncertainty level of euro-
based emission factors is
typically higher. These
factors are from 2021 and
have been adjusted for
inflation to 2024.
3, 8
3. Fuel and
energy-related
Activities
• Amount and
type of fuel
used.
• Total kilometers
driven by the
company's own
and leased
vehicles.
• Total volume of
purchased
electricity and
heat.
• WTT emissions from
vehicle fuels have been
calculated based on Scope
1 data. The data collected
has been reported using
the corresponding emission
factors.
• For purchased heat and
electricity, both WTT and
T&D emissions have been
calculated using both
market-based and location-
based approaches. The
emissions are reported on
a location-based basis.
• The emission factor for the
fuels used in the production
of purchased heat has
been determined using the
weighted average of fuel
and WTT emissions.
• Except for heat production,
the emission factors for this
category are readily
available from databases.
• Upstream emissions from
the fuels used in purchased
heat do not consider the use
of combined heat and power
(CHP) plants in district
heating networks or losses in
energy production and
distribution.
2,4,6
4. Upstream
transportation
• Emissions data
provided by
• The emissions reported by
logistics service providers
• The data received from
logistics service providers
3,8,16,17,1
8
54
and
distribution
logistics
companies.
• Expenditure on
logistics
services (€)
include both upstream and
downstream transportation
costs covered by the
reporting company.
• While the transportation fee
for products purchased
online is included, it is
primarily paid by Puuilo
rather than the customer.
Therefore, it is accounted
for in the upstream.
• Data has been primarily
collected from partners,
with secondary data from
accounting records on the
scale of purchases.
• Approximately 80% of the
products received by the
company are delivered
directly to stores from level
1 suppliers. The freight
cost is included in the
product price, and these
costs cannot be broken
down. Therefore, they are
classified under scope 3
category 1.
has been categorized as
measured data points. The
quality of the data, however,
is not known.
• The uncertainty level of the
euro-based emission factors
applied in the calculation is
generally higher. These
factors are from 2021 and
have been adjusted for
inflation to the year 2024.
5. Waste
generated in
operations
• Amount and
disposal method
of waste
streams
• Number of
employees,
industry, and
waste type
• Water
consumption
(m3)
• The amounts of waste
generated during retail
store operations,
categorized by waste
stream, have been
gathered from the waste
management partner’s
portal. The waste streams
have been allocated to the
appropriate emission
categories based on the
reported treatment
methods.
• Wastewater generation has
been determined based on
measured water
consumption. It is assumed
that the amount of tap
water consumed, as
monitored by water meters,
is equivalent to the amount
of wastewater produced.
• For locations with no
available measured water
consumption data, the
arithmetic mean
consumption from other
stores has been used.
• There is uncertainty
regarding the compatibility
between the waste stream
treatment method and the
emission factor. However,
this does not significantly
affect the overall results of
the calculation.
• The waste amount
generated at the
headquarters is based on an
estimate, and as such,
involves a level of
uncertainty. However, the
volume of waste is negligible
relative to the retail business
operations.
5, 19
55
Waste generated at the
headquarters has been
estimated using HSY
statistics based on the
number of employees and
the industry type.
6. Business
travel
• Mileage
allowances
• The calculation includes
mileage allowances paid to
employees. The total
kilometres driven were
estimated based on the
official 2024 mileage
allowance rate published
by the tax authority.
• Flights, trains, and taxis have
been excluded from the
calculation due to lack of
available data. This
exclusion is estimated to
have a moderate impact on
the results of this specific
category, but not on the
overall calculation.
4
7. Employee
commuting
• Commuting
survey,
considering
modes of
transport, trips,
and their
frequency
• Number of
employees
• The base data was
collected through a survey,
with responses from 305
out of 847 employees. The
results were extrapolated
to cover the entire
workforce.
• 252 working days were
assumed.
There is no measured data
available regarding
employees' commuting
patterns.
4,12
Scope 3 greenhouse gas emission categories excluded from the inventory
Excluded from the inventory
Justification
Scope 3: Category 8: Upstream leased assets
Emissions during the use phase are consolidated into
the Scope 1 and 2 emissions of the reporting
company according to the chosen methodology.
Scope 3: Category 9: Downstream transportation
N/A
Scope 3: Category 10: Processing of sold products
N/A
Scope 3: Category 11: Use of sold products
Not assessable due to the number of products and
their numerous different use-phase scenarios.
Scope 3: Category 12: End-of-life treatment of sold
products
Not assessable due to the number of products and
their numerous different end-use scenarios.
Scope 3: Category 13: Downstream leased assets
N/A
Scope 3: Category 14: Franchising
N/A
Scope 3: Category 15: Investments
N/A
N/A = not applicable, e.g., no emissions are generated from the respective category.
Scope 3 category
tCO2e – supplier- specific
data
%-share of total emissions calculated
using
supplier-specific data
1. Purchased goods and services 0.0 0%
2. Capital goods 0.0 0%
3. Fuel and energy-related Activities 0.0 0%
4. Upstream transportation and
distribution
3.386,2 99.75%
5. Waste generated in operations 0.0 0%
6. Business travel 0.0 0%
7. Employee commuting
0.0
0%
56
Emission Factor Sources:
1 AIB (2023). European Residual Mixes. https://www.aib-
net.org/sites/default/files/assets/facts/residual-
mix/2023/AIB_2023_Residual_Mix_FINALResults09072024.pdf
2 Carbon Footprint Ltd (2024). International Electricity Factors.
https://www.carbonfootprint.com/international_electricity_factors.html
3 DEFRA (2021). Conversion factors KgCO2 per £ spent, by SIC code 2021.
https://www.gov.uk/government/statistics/uks-carbon-footprint#full-publication-update-history
4 DESNZ & DEFRA (2024). Greenhouse gas reporting: Conversion Factors 2024.
https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-
2024
5 Ecoinvent v3.11. Allocation, cut-off by classification. https://ecoinvent.org/
6 Ember (2024). Energy Institute - Statistical Review of World Energy (2024) – with major
processing by Our World In Data. https://ourworldindata.org/electricity-mix
7 Energiateollisuus (2023). Energiavuosi 2023 Kaukolämpö. https://energia.fi/wp-
content/uploads/2024/01/Kaukolampovuosi-2023_ennakkograafit.pdf
8 Eurostat (2025). HICP - monthly data (annual rate of change): Euro area.
https://ec.europa.eu/eurostat/databrowser/bookmark/952bcf60-22e8-433b-ab93-
fe85e2ab2367?lang=en
9 Paikallisvoima ry (2022). Kaukolämmön päästölaskuri (Energiamenetelmä).
https://www.klpaastolaskuri.fi/
10 Paikallisvoima ry (2023). Kaukolämmön päästölaskuri (Energiamenetelmä).
https://www.klpaastolaskuri.fi/
11 Paikallisvoima ry (2024). Kaukolämmön päästölaskuri (Energiamenetelmä).
https://www.klpaastolaskuri.fi/
12 Stott S. (2020). How green is cycling? Riding, walking, ebikes and driving ranked.
https://www.bikeradar.com/features/long-reads/cycling-environmental-impact
13 Tilastokeskus (2023). Energia ja päästöt.
https://pxhopea2.stat.fi/sahkoiset_julkaisut/energia2023/html/suom0011.htm
14 Alkuperätakuutodistus, VENI Energia (2025).
15 Ecoinvent 3.8. Allocation, cut-off by classification. https://ecoinvent.org/
16 Puuilo Tavaratalot Oy - Posti päästöraportti 02.2024–01.2025
17 Puuilo Tavaratalot Oy – Matkahuolto päästöraportti (2025)
18 Puuilo Tavaratalot Oy – Schenker päästöraportti (2025)
57
ESRS E5 Resource use and circular economy
Impact, Risk, and Opportunity management
E5-1 Policies related to resource use and circular economy
In retail, resource use and circular economy affect every stage of the value chain: raw material
procurement and natural resource use, product design and manufacturing, logistics and packaging,
maintenance and repair, as well as waste management and recycling.
Puuilo does not yet have policies related to resource use and the circular economy that have been
approved by the Board of Directors, as operations have so far been guided by practical procedures.
In its own operations, the company strives to produce as little landfill waste as possible. Waste is sorted
to the greatest extent possible. The recycling rate is monitored at both the store and company levels.
Detailed instructions for waste handling and sorting are part of the store work guidelines.
Puuilo offsets the carbon footprint of its waste management by purchasing permanent carbon sinks
through afforestation projects with its waste management partner.
E5-2 Actions and resources related to resource use and circular economy
Key actions focus on ensuring product quality, training staff and suppliers on ethical guidelines, and
reducing waste and increasing the recycling rate.
The durability of products improves customer satisfaction and reduces environmental impact by
decreasing logistics emissions and waste. Product quality is primarily ensured through careful supplier
selection. Products imported by Puuilo are evaluated and tested considering the specific characteristics
required for each product.
The purchasing organization is responsible for the ethical guidelines of procurement and for training
suppliers and its own staff on them. Puuilo representatives also conduct factory visits for quality
assurance purposes.
The change in waste volume was 13.4% compared to the previous financial year. At the same time, the
number of stores increased by seven, corresponding to a 16.7% growth. Store managers monitor store-
specific and chain-wide waste production. During the financial year 2024, staff training on waste
management and recycling continued to achieve the recycling target.
The Easy Waste pilot project aimed at improving the recycling rate was implemented in nine stores. It
included a store-specific mapping of waste areas, an analysis of waste billing, and the creation of
guidelines.
Due to the implementation of waste volume monitoring, staff training, and the Easy Waste project, it is
anticipated that waste sorting and recycling processes will become more efficient in the stores.
58
Metrics and targets
E5-3 Targets related to resource use and circular economy
Puuilo aims to further develop waste management and sorting. These targets are voluntarily set by
Puuilo and relate to recycling within the waste hierarchy. To reduce the harmful environmental impacts
of packaging materials and minimize waste management costs, the goal is to increase the recycling rate
of Puuilo's own operations to 73% by the end of the financial year 2025. No specific targets have been
set for different waste types. Stakeholders have not participated in setting the recycling rate target.
No other targets related to resource use and circular economy have been set.
Emission offsets for waste management are described in section E1-3.
E5-4 Resource inflows
Puuilo's product range includes approximately 30,000 items. The main product groups are building
supplies, HVAC and electrical accessories, car accessories, household products, garden supplies, pet
food and supplies, tools, free-time accessories, groceries, and services. The products mainly contain
plastics, rubber, wood, and metals, some of which include critical raw materials and rare earth metals.
The products sold are procured ready-made from the supply chain: Puuilo does not manufacture or
further process products itself, nor does it have detailed information about the raw materials of the
products.
In Puuilo's own operations, water consumption is very low. Fixed assets mainly consist of store fixtures
and equipment.
Puuilo uses conventional packaging materials such as plastic wraps, cardboard, and paperboard for
incoming goods and the transportation of products sold in the online store.
E5-5 Resource outflows
Puuilo sells products to consumer and business customers, which are divided into ten product groups:
building supplies, HVAC and electrical accessories, car accessories, household products, garden
supplies, pet food and supplies, tools, free-time accessories, groceries, and services. The expected
durability and reparability of the products generally correspond to the average durability and reparability
of products in the same category.
The largest waste groups generated in Puuilo's operations are cardboard, energy waste, mixed waste,
and plastics. Additionally, the operations produce construction, metal, and wood waste. The proportion
of waste classified as hazardous, such as batteries or aerosols, is less than 1% of the total waste volume.
In online store, the materials used for packaging products for customer deliveries, such as cardboard
and plastics, are 100% recyclable. Orders are packed as compactly as possible to keep the package
size small and to take up less space in delivery vehicles. Cardboard received at the warehouse is reused
for packing online orders. Deliveries are carried out using electric vehicles whenever possible.
The operational metric for waste management is the recycling rate, which was 67% in 2024.
59
Information on Puuilo's Waste
The waste data is based on data and reporting from the waste management partner.
Total non-hazardous waste
Non-hazardous waste, preparation for reuse
Non-hazardous waste, recycling
Non-hazardous waste, other recovery operations
Non-hazardous waste, final disposal total
Non-hazardous waste, incineration
Non-hazardous waste, landfill
Non-hazardous waste, other disposal operations
Total hazardous waste
Hazardous waste, preparation for reuse
Hazardous waste, recycling
Hazardous waste, other recovery operations
Hazardous waste, final disposal total
Hazardous waste, incineration
Hazardous waste, landfill
Hazardous waste, other disposal operations
Total amount of waste in metric tons
1,742
Total amount of non-recycled waste in metric tons
555
Percentage of non-recycled waste 31.9%
Summary of waste generated during the reporting period in tonnes (t)
Total amount of waste in metric tons
1,742
Total amount of hazardous waste in metric tons
14
Total amount of non-recycled waste in metric
tons
555
Total amount of non-recycled waste in metric
tons
32
Waste directed to other than final disposal by type of recovery in tonnes (t)
Hazardous waste
Preparation for reuse
0
Recycling
7
Other recovery options
5
Total
12
Non-hazardous waste
Preparation for reuse
3
Recycling
1 158
Other recovery options
548
Total
1 709
60
Waste directed to final disposal by type of treatment in tonnes (t)
Hazardous waste
Incineration (without energy recovery)
0
Landfilling
0
Other final disposal
2
Total
2
Non-hazardous waste
Incineration (without energy recovery)
0
Landfilling
0
Other final disposal
0
Total
0
Other final disposal includes waste treated by other methods and transloaded waste for final disposal.
Social
ESRS S1 Own workforce
Impacts, risks, and opportunities management
S1-1 Policies related to own workforce
All Puuilo's own workforce works in Finland. The principles related to the own workforce are described
in Puuilo's House Book, the Code of Conduct for employees, and the Equality, Non-Discrimination, and
Personnel Development Plan. These principles apply to all Puuilo employees. No groups have been
identified within the workforce that would require or be subject to special principles or measures.
The House Book contains a wide range of principles, practices, and practical guidelines related to
working at Puuilo. Familiarization with the House Book is part of every employee's induction at the
workplace. One of its goals is to enhance the well-being of the work community and the creation of a
good customer experience. The CEO is responsible for the implementation of the House Book, and
each member of the management team is responsible for the operating instructions within their area of
responsibility.
The Code of Conduct for employees forms the basis for all our activities, and every Puuilo employee
must follow the guidelines provided therein. The Code of Conduct adheres to the Universal Declaration
of Human Rights by the United Nations and the Declaration on Fundamental Principles and Rights at
Work by the International Labour Organization (ILO). The use of human trafficking, child labour, or any
form of forced labour is not accepted.
The purpose of the Code of Conduct is to help Puuilo employees act responsibly in their work. The
principles of conduct are:
• We comply with laws and commitments
• We do not accept corruption or bribery
• We avoid conflicts of interest and compete fairly
• We respect human rights and care about our work community
• We promote more sustainable consumption
• We are a responsible retailer
• We communicate openly and truthfully
• We handle information confidentially
61
• We comply with insider regulations and Puuilo's insider guidelines
• Reporting concerns and violations
The principles presented in the Equality, Non-Discrimination, and Personnel Development Plan are:
• All employees have equal opportunities to succeed and develop in their work
• The goal is to create a work community where employees treat each other equally and fairly
• Equal and non-discriminatory treatment of everyone in both daily operations and decision-
making
• No one should be discriminated against based on gender, age, origin, nationality, language,
religion, belief, opinion, political activity, trade union activity, family relationships, health status,
disability, sexual orientation, or any other personal reason.
The HR unit is responsible for the content of the House Book, the Code of Conduct, and the Equality,
Non-Discrimination, and Personnel Development Plan, and the management team approves them.
Employees have full freedom of association, and representatives have been elected for all staff groups.
The principles for preventing occupational accidents are established as part of a three-year occupational
safety program. The goal of occupational health care is preventive and work ability-maintaining activities.
Employees are offered occupational health services that go beyond statutory requirements. The hazards
and risk factors of work have been assessed on a unit-by-unit basis. It is the supervisor's task to guide
employees in safe working practices. All Puuilo store employees undergo annual occupational safety
training.
S1-2 Processes for engaging with own workers and workers’ representatives about impacts
Interaction with the staff is based on openness. The CEO organizes staff meetings four times a year.
Internal team collaboration has been increased with regular weekly and monthly meetings throughout
the organization.
The cooperation negotiation committee meets four times a year. The committee addresses matters in
accordance with the Cooperation Act as well as common issues affecting the entire staff that are
significant for the staff's access to information and opportunities to influence.
Puuilo complies with the Cooperation Act and its regulations on cooperation and dialogue with the staff
and their representatives. The occupational safety committee monitors the implementation of
occupational safety, identifies development needs related to well-being at work and the work community,
and proposes solutions to them. The staff elects four regional occupational safety representatives and
their deputies. Both the occupational safety representatives and their deputies are members of the
occupational safety committee.
The occupational health steering group meets four times a year. The HR director has monthly meetings
with the staff representatives.
The effectiveness of communication is evaluated through staff surveys with questions related to
communication and leadership culture.
The HR director is responsible for communication with staff representatives. If necessary, matters are
discussed in the management team or among the members of the management team.
62
S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns
Negative impacts on staff are addressed by intervening in working conditions and work-related stress.
Observations or reports of such issues lead to a thorough investigation of the working conditions,
consultation with the concerned parties, and, if necessary, improvement of tools or methods and
updating of guidelines.
Every employee has the responsibility and duty to address any issues they observe, such as
inappropriate behaviour or deficiencies in occupational safety or working conditions. Observations are
reported to the employer. There is a dedicated PRO24 system for reporting occupational safety
observations. The employer is obligated to address the reported issues upon receiving the information.
Puuilo follows a consistent model for addressing situations where an employee's behaviour is
unacceptable for any reason. Any observed concerning or poor behaviour is addressed by the
supervisor whenever necessary. This model is described and instructed in the House Book.
The annual staff survey also includes open questions where concerns can be raised. Based on the
survey results, development measures are planned, and their implementation is monitored. Store
managers receive store-specific reports.
The House Book describes the occupational safety and staff representative organizations along with
their contact information. This information is electronically available to all staff.
Puuilo has an external service provider-maintained whistleblowing channel for reporting cases that
violate ethical principles, suspicions of such cases, or other concerns. The whistleblowing channel is
publicly available on the company's website and internally to all staff via the Teams channel. Information
about the whistleblowing channel and its operating principles is provided during induction, in the House
Book, on the Teams channel and in the Code of Conduct for employees.
Reports can be made anonymously. If desired, the reporter can receive information about the handling
and actions taken based on the report. Written operating principles are defined for handling reports and
taking actions. The system classifies reported cases, and they are regularly reported to the management
team and the Board of Directors.
The whistleblowing channel is designed to protect the identity of the reporter in all situations related to
making a report. If desired, the reporter can remain anonymous throughout the entire report
management and investigation process. Puuilo also does not attempt to identify the reporter in any way.
Reports are investigated promptly, and potentially conflicted individuals are excluded from the internal
investigation.
In the staff survey, 95% of respondents completely or somewhat agreed with the statement "I know how
to report misconduct that I have experienced or observed”.
S1-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and
pursuing material opportunities related to own workforce, and effectiveness of those actions
Puuilo aims to be a workplace that employees want to commit to. Employee well-being and job
satisfaction are promoted by investing in leadership, occupational safety, employee skills, the
smoothness of daily work, and a reasonable workload.
The importance of human rights and equality is emphasized to all employees during induction and in
the Code of Conduct. In 2024, no human rights impacts were observed that would have required specific
corrective actions.
63
The Equality and Non-Discrimination Plan and its implementation are monitored in the cooperation
negotiation committee and discussed with staff representatives. Puuilo's goals for an equal and non-
discriminatory workplace are considered in workforce recruitment, task allocation, career progression,
compensation, job diversification, and support for participation in training. The training of employees on
the Code of Conduct is systematically continued.
Employee retention is seen as a success factor at Puuilo, affecting the level of customer service and
employee satisfaction. For this reason, employees are primarily offered full-time employment contracts.
Employee well-being is supported by offering employment benefits to all staff. These include staff
discounts, an employee benefit program, and a well-being benefit that can be used to purchase desired
sports, cultural, and wellness services. Employees are rewarded for long service and on special
occasions. Recreational activities are also organized for the staff.
Annual assessments of accident risks and work ergonomics are conducted in stores and other locations.
A more comprehensive workplace survey on the physical and mental workload is conducted every five
years. Mandatory occupational safety training is organized regularly. Additionally, it is ensured that
employees have appropriate tools that support well-being and occupational safety.
Puuilo's growth and the introduction of new operating models and systems require continuous
development of employee skills. The focus areas for 2024 were:
• Training related to the implementation of the Relex replenishment ordering system
• Induction training and further development of the induction process
• Expansion of leadership training to include all supervisors at Puuilo
• Expansion of professional qualification opportunities, including the introduction of the JYET
qualification (for store managers and chain support specialists)
• Partial qualification in logistics for warehouse workers in collaboration with Taitotalo
Puuilo supports the personal development of employees and encourages them to pursue independent
training. Studying alongside work is facilitated through various work arrangements such as study leave
or temporary part-time work. PuuiloOpisto, implemented in collaboration with Taitotalo, offers further
and supplementary training related to sales, customer service, and supervisory tasks for employees in
permanent and over one-year fixed-term employment.
The early intervention model supports employees' ability to cope at work. Possible actions are always
evaluated on a case-by-case basis.
Occupational accidents and near-miss incidents are reported in the system. Cases are investigated to
determine how they can be prevented in the future.
The principles and practices described in the Code of Conduct and the Equality and Non-Discrimination
Plan aim to ensure that potential negative impacts on employees are managed. According to business
cycles, negative impacts such as the need to adjust the workforce in stores cannot be completely ruled
out.
Employee matters are handled by Puuilo's HR team under the HR director. The team consists of six full-
time equivalents. The occupational safety organization includes the occupational safety manager and
elected occupational safety representatives. The cooperation negotiation committee consists of 17
members in total. The chief shop steward is a full-time position.
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Metrics and targets
S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material
risks and opportunities
Puuilo's significant potential negative sustainability impacts on its own workforce include dissatisfaction
with working conditions, workload, and financial challenges. These impacts are not systemic but related
to individual cases.
Puuilo's significant potential positive sustainability impacts on its own workforce include offering
permanent employment contracts and high job satisfaction due to good working conditions. Additionally,
the positive impacts of equality on employees' skills, career development, and well-being were identified
as potential positive impacts. These impacts affect all employees, especially those in permanent and
full-time positions.
Puuilo does not have time-bound goals. The impacts on the workforce are monitored by the proportion
of full-time employment contracts and employee surveys. The goals are:
• Proportion of full-time employment contracts at 80%
• Conducting employee surveys and improving results compared to the previous year
The proportion of full-time employment contracts was 74%.
Employee well-being is measured by an annual employee survey. The PeoplePower index of the survey
decreased to 70.1 points from 71.9 points the previous year and was 0.5 points above the retail industry
norm.
The PeoplePower index represents the overall result of the employee survey. It is calculated based on
22 index questions. The result is 0 if all respondents were extremely critical and 100 if all respondents
were extremely positive in answering all index questions.
S1-6 Characteristics of the undertaking’s employees
All Puuilo employees are covered by this disclosure requirement. In 2024, the number of employees
converted to full-time equivalents was 849 (791 in the previous period). The number of employees at
the end of the financial year was 1,093 (1,037 in the previous period). Of the employees, 51 percent
were women, 41 percent were men, and 8 percent did not disclose their gender.
Gender Distribution of Employees
Gender
Number of employees
Women 558
Men 446
Other 1
Not reported 88
Number of employees 1 093
65
Country of Employment for Employees
Country Number of employees
Finland 1 093
Other countries 0
Information About Employees
2024
WOMEN MEN OTHER* NOT
REPORTED
TOTAL
Number of employees (FTE)
433 346 1 68 849
Number of permanent
employees (FTE)
341 259 1 31 632
Number of temporary
employees (FTE)
71 66 0 28 166
Number of non-guaranteed
hours employees (FTE)
22 21 0 9 51
Number of full-time
employees (FTE)
345 259 1 27 631
Number of part-time
employees (FTE)
89 88 0 41 218
The information is reported as full-time equivalents (FTE) at the end of the financial year, calculated by
dividing the hours worked by employees by the standard hours of a full-time employee. The same figures
are used in the financial statements. The number of employees working variable hours is considered as
a separate group and is not included in the numbers of permanent or fixed-term employees. Employees
working variable hours are on-call workers and are included in the number of part-time employees.
The nature of the employment contract is recorded in the personnel information system for each
employment relationship.
During the reporting period, 476 employment contracts ended. The turnover rate was 44 percent. The
turnover rate is calculated by dividing the number of employment contracts that ended during the
reporting period by the number of employees at the end of the financial year. The turnover figures
include summer workers and those working variable hours.
S1-9 Diversity metrics
Gender Distribution of Management
Men
Women
Other
Not reported
Number
%
Number
%
Number
%
Number
%
Board of directors
4
67
2
33
0
0
0
0
Management team
6
86
1
14
0
0
0
0
66
Personnel by age group
Head count Percentage
Under 30 years
411 48%
30−50 years
328 39%
Over 50 years
110 13%
The information is reported as full-time equivalents (FTE), calculated by dividing the hours worked by
employees by the standard hours of a full-time employee. The same figures are used in the financial
statements.
S1-10 Adequate wages
The salary paid to an employee is based on the demands of the job and the employee's personal skills,
qualifications, and performance. Puuilo pays all its employees at least the salary stipulated by the
collective agreement for the retail sector. The exception is senior employees, whose terms of
employment are not covered by the collective agreement.
S1-14 Health and safety metrics
Occupational accidents among Puuilo's staff are typically minor, such as falls, sprains, or cuts, and they
result in at most short-term absences.
Health and Safety Metrics
Share of employees with employment contracts covered by
occupational health services (%)
100%
Number of fatalities due to work related injuries and
occupational health issues
0
Occupational accidents 20
Accident frequency 13.99
The number of recorded occupational accidents is estimated based on the total number of accidents
and the length of the resulting absence. A recorded occupational accident is defined as an absence of
more than four days, as such an absence usually requires a doctor's visit. The accident frequency is
calculated by dividing the number of recorded occupational accidents by the total number of hours
worked, multiplied by one million hours.
S1-16 Compensation metrics (pay gap and total compensation)
In the financial year 2024, the gender pay gap for all employees of the Puuilo Group was 10.6%. The
calculation of pay gaps used gross monthly salaries, including experience bonuses. Bonuses were not
considered in the calculation. Overtime pay was also not considered, as it is based on the collective
agreement and paid equally to everyone.
The Company estimates that, the ratio of the total earnings of Puuilo's highest-paid person to the median
total earnings of other employees was 6.5.
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S1-17 Incidents, complaints and severe human rights impacts
During the reporting period, four cases of discrimination or harassment were recorded through Puuilo's
supervisors or the whistleblowing channel. One of these cases was reported through the whistleblowing
channel and three through supervisors. There were two other complaints made through the
whistleblowing channel. The data for this metric is provided by the whistleblowing channel administrator
and the HR unit.
No serious human rights cases were identified during the reporting period.
No cases were handled in court. No fines, penalties, or damages were paid.
ESRS S2 Workers in the value chain
Impact, risk and Opportunity management
S2-1 Policies related to value chain workers
The principles concerning value chain workers are documented in Puuilo's procurement ethical
guidelines, which are based on the UN Global Compact corporate responsibility initiative and the OECD
Guidelines for Multinational Enterprises. The procurement ethical guidelines are attached to
procurement contracts and apply to all Puuilo's procurements and all countries in the supply chain.
Puuilo respects internationally recognized human rights and is committed to promoting universal
fundamental principles and rights at work, such as the right to organize and negotiate, occupational
health and safety, the prohibition of forced or child labour and human trafficking, non-discrimination,
reasonable working hours, and fair compensation for work performed.
Puuilo aims to reduce potential human rights violations in its value chain and, if necessary, to remedy
any harmful impacts that have occurred. Puuilo's suppliers and partners are similarly required to
recognize and promote the realization of human rights and labour rights. Suppliers and partners report
on the promotion of responsibility upon request. If deficiencies are found in their operations, corrective
actions are sought primarily through cooperation. Cooperation may be terminated if the situation does
not improve.
The Director of Procurement and Logistics is responsible for procurement and compliance with the
related principles.
Puuilo has not become aware of any cases related to value chain workers where the principles of the
UN, ILO, or OECD regarding human rights have not been followed.
S2-2 Processes for engaging with value chain workers about impacts
Puuilo maintains close contact with its suppliers, but there is no regular direct communication with value
chain workers. Due to the large number of value chain workers, such communication is currently not
seen as realistic. Communication is carried out indirectly through social responsibility audits conducted
by third parties. In practice, this means audits based on the amfori BSCI Code of Conduct principles or
similar. These audits provide information about the working conditions of employees, including the
safety of production working conditions, employee compensation and working hours, and the realization
of the right to organize and negotiate.
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S2-3 Processes to remediate negative impacts and channels for value chain workers to raise concerns
Puuilo requires amfori BSCI certification or equivalent from suppliers whose country of operation is
classified as high-risk for human rights compliance. The classification is based on the amfori risk country
classification. Certification is a prerequisite for entering into a new contract or renewing an existing one.
The entity granting the certification is responsible for auditing the suppliers.
If there are suspicions regarding the working conditions or human rights compliance of a supplier's
employees, the case is investigated together with the supplier. The supplier is given the opportunity to
take corrective actions within a reasonable time. The company evaluates the results of the corrective
actions together with the supplier. On a case-by-case basis, cooperation with the supplier may be
terminated if the supplier does not commit to corrective actions.
Value chain workers have the opportunity to communicate through Puuilo's whistleblowing channel on
the company's website. In practice, Puuilo has no means to inform value chain workers of its existence
or ensure they are aware of it. The channel and its operating principles are described in disclosure
requirement S1-3.
S2-4 Taking Action on material impacts, and approaches to mitigating material risks and pursuing material
opportunities related to value chain workers, and effectiveness of those actions and approaches
Domestic suppliers and suppliers from countries classified as low-risk for human rights compliance are
required to commit to Puuilo's procurement ethical guidelines. These guidelines also consider the
working conditions and human rights of value chain workers. Suppliers from high-risk countries are
required to have an amfori BSCI or equivalent internationally recognized responsibility certificate.
Updated procurement practices are applied to both new suppliers and the renewal of contracts with
existing suppliers.
The commitments and certificates aim to ensure that the working conditions of value chain workers are
adequate and that their human rights are respected. The use of contract terms provides an incentive for
the supply chain to take responsibility. Cooperation with suppliers is described in more detail in section
G1-2 of the report.
In 2024, no specific actions were taken as Puuilo did not receive any reports of serious human rights or
labour rights violations.
The procurement department, led by the Director of Procurement and Logistics, is responsible for
supplier selection and related processes as part of daily tasks. In 2024, no separate appropriations were
used, nor were any investments made related to supplier selection or value chain workers.
Metrics and goals
S2-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material
risks and opportunities
The goal is to expand the coverage of amfori BSCI or equivalent certification in supplier contracts from
high-risk countries. These certifications demonstrate the suppliers' commitment to ensuring the working
conditions and human rights of their employees. This goal is set by Puuilo's management team without
direct communication with value chain workers.
The metric used is a ratio comparing purchases in euros from certified suppliers in high-risk countries
to all purchases from high-risk countries. The metric was reviewed in 2024, which serves as the base
year. The baseline value of the metric, or the actual figure for 2024, was 85.5 percent. The goal is to
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increase the proportion to 90 percent by 2028. During the reporting period, purchases were made from
high-risk countries such as China, India, Pakistan, Turkey, and Vietnam.
Basis for Metrics Related to Value Chain Workers
The classification into high-risk and other countries in the supply chain is based on the amfori BSCI risk
country classification. Information about the supplier's certification is obtained from the amfori BSCI
portal.
ESRS S4 Consumers and end-users
Management of Impacts, Risks, and Opportunities
S4-1 Policies related to consumers and end-users
The key sustainability issues for consumers and end users relate to product safety. The principles
guiding product safety are described in Puuilo's ethical guidelines and the amfori BSCI principles.
The amfori BSCI principles are a commitment by Amfori members and their business partners to respect
human rights and protect the environment in the global supply chain in accordance with internationally
recognized principles. These principles help identify, prevent, mitigate, report, and remedy adverse
impacts on human rights and the environment, which also applies to consumers and end users.
In Puuilo's ethical guidelines, consumers and end users are particularly considered in the section "we
communicate openly and truthfully." Product, service, price, and other factors are presented clearly and
truthfully in marketing communications, and misleading expressions are not used. Additionally, the
section "we handle information confidentially" describes the absolute confidentiality of customer data
and other personal information. The ethical principles are described in more detail in section G1-1.
Puuilo's data protection and information security policy aims to ensure the confidentiality, integrity, and
availability of information that requires protection. In all personal data processing, the following principles
are adhered to:
• The processing of personal data is always lawful and fair
• The person whose data is being processed is provided with sufficient information about the
processing in an easily accessible and understandable form
• Personal data is processed only for a predefined specific and lawful purpose
• The rights of data subjects are implemented without delay
• Only necessary and appropriate personal data for the purpose of processing is collected and
processed
• The accuracy and updating of data are appropriately ensured
• Personal data processing activities are documented
• Personal data is retained only for the time required by its purpose
• Personal data is protected against accidental or unlawful destruction, loss, alteration,
unauthorized disclosure, or access
• Data protection and information security guidelines are followed in processing
The Director of Procurement and Logistics is responsible for implementing the principles related to
product safety, and the Director of Information Management is responsible for implementing the
principles related to data protection and information security.
70
The data protection and information security policy has been approved by the company's Board of
Directors. Its key guidelines are included in Puuilo's ethical guidelines and the House Book, which are
available to all staff. Annual data protection and information security training is mandatory for all staff.
Puuilo does not have a separate human rights commitment for customers and end users. Respect for
human rights is outlined in the ethical guidelines and procurement ethical guidelines. These are
described in more detail in section G1-1.
S4-2 Processes for engaging with consumers and end-users about impacts
Consumer needs and preferences directly guide retail operations. These are interpreted through product
sales and customer satisfaction. The product range is adjusted based on consumer opinions and
feedback. All stakeholders, including consumers and end users, emphasized privacy and data security
in the stakeholder survey related to the double materiality assessment.
Puuilo has several channels for communication with customers. Customers can directly contact Puuilo's
centralized customer service or store staff. Written feedback can be provided through Puuilo's website,
which also includes contact information for customer service, stores, and Puuilo's management team.
The whistleblowing channel on Puuilo's website is also available to business customers, consumers,
and end users. The channel and its operating principles are described in disclosure requirement S1-3.
Daily interactions, customer calls, and feedback are common.
An annual customer satisfaction survey is conducted. Additionally, a comprehensive stakeholder survey
was conducted as part of the double materiality assessment to gather customer views on Puuilo's
responsibility.
The CEO, who has the highest operational responsibility, is in charge of communication with customers,
communication channels, and considering customer views.
Customer feedback is responded to based on a case-by-case assessment. The number of product
returns and complaints is continuously monitored.
Puuilo also sells products intended for children. The primary customers are guardians, and the
aforementioned customer channels are also available to children, so there has been no need for
separate consultation with underage customers.
S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns
Customers have the right to exchange or return purchased products within 30 days. The right of return
does not apply to strictly defined product groups, such as hygiene products, food, or pet food.
Product safety is strictly regulated. Authorities responsible for monitoring product safety include the
Finnish Safety and Chemicals Agency (Tukes), Customs, and the Food Authority. Each buyer monitors
regulatory changes for their product area.
Quality and product safety deviations are addressed as necessary with sales bans and recalls, which
are effective means of removing substandard products from the market. Any damages caused by
defective products are compensated to the customer.
The channels available to consumers and end users to raise concerns and needs directly with Puuilo
are described in disclosure requirements S1-3 and S4-2. Puuilo considers these channels to be
sufficient and believes that consumers are aware of them.
71
S4-4 Taking action on material impacts on consumers and end-users, and approaches to managing material risks
and pursuing material opportunities related to consumers and end- users, and effectiveness of those actions
Actions Related to Product Safety
Puuilo aims to enhance product safety and thereby manage the costs associated with product recalls
and strengthen brand image through preventive measures. The quality and safety of products are
primarily ensured through careful supplier selection, which includes both product safety and quality
documentation as well as checking supplier customer references. Products imported by Puuilo are
evaluated and tested considering the specific characteristics required for each product.
Product packaging labels and instructions for use must be appropriate. If necessary, it is ensured that
safety data sheets for products such as chemicals are available.
Product safety is a key theme in the induction of buyers. In stores and customer service, customers are
guided on the safe use of products.
Ensuring product safety is a continuous activity for the company. The proportion of complaints and
product reviews on the online store are monitored every two weeks. If complaints increase, the supplier
is promptly contacted to investigate the quality deviation. Product safety is also addressed in the
description of procurement criteria in disclosure requirement S4-1.
In cases of serious quality deviations, a decision on a sales ban or recall is made if necessary. In these
cases, cooperation is carried out with the authorities responsible for monitoring product safety, and their
guidelines are followed. Quality deficiencies may lead to a change of supplier. The product range is
supplemented with a replacement product from another manufacturer if necessary.
Puuilo has not received any reports related to human rights or violations of human rights concerning
consumers or end users.
In the company's procurement organization, a product development and quality manager support the
buyers.
Actions Related to Data Protection
By offering secure payment methods to customers, the risk of identity theft and fraud is reduced.
Information security is part of daily operations and is implemented through administrative and technical
measures.
The Director of Information Management handles information security incidents and reports them
internally within Puuilo as necessary. Cases deemed serious are addressed by the company's
management team. Identified information security risks are managed with a plan, which includes
scheduling necessary actions and assigning responsible persons.
An annual assessment of information security risks and an external evaluation of information security
are conducted. Based on these, an annual action plan is prepared. The implementation of the plan is
monitored quarterly by the management team and annually by the Board of Directors.
In 2024, the assessment focused on data protection. Based on the findings, data protection
documentation and practices were refined. No serious information security incidents were identified at
Puuilo in 2024.
According to the 2024 action plan, in addition to the aforementioned data protection work, document
classification was piloted, the effectiveness of the continuity plan in managing cyberattacks was tested,
72
a new attack simulation and training tool was introduced, and technical protections for securing identities
and devices were tightened.
The expected outcomes of these actions are the continued implementation of information security and
the absence of serious information security incidents.
Regarding the security of card payments, Puuilo complies with the international PCI DSS standard
(Payment Card Industry Data Security Standards). The company is audited annually for PCI DSS
compliance. All staff undergo annual information security and data protection training, and all employees
working with payment cards complete annual PCI passport training. The HR department monitors the
completion of these trainings.
Metrics and targets
S4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material
risks and opportunities
There are no time-bound targets set for product safety.
The information security targets, in addition to meeting legal and regulatory requirements, include
ensuring that no serious security incidents or breaches occur. In the financial year 2024, there were no
serious information security incidents.
Basis for Metrics Related to Consumers and End Users
Puuilo's IT department assesses the severity of all information security incidents and breaches. The
assessment considers how they affect individuals or the company and what can be done with the leaked
information.
Governance
ESRS G1 Business Conduct
G1-1 Corporate culture and business conduct policies and corporate culture
Puuilo's corporate culture embodies the company's values, which have been formulated together with
the staff. These values are actively communicated to ensure they become part of the company's daily
operations.
73
Puuilo strives to maintain an atmosphere of openness and high ethics in its business operations.
Business conduct is guided by the House Book, which are internal guidelines for employees, ethical
guidelines for employees, and the Supplier Code of Conduct. The House Book and ethical guidelines
for employees are described in section S1-1, and the Supplier Code of Conduct is described in sections
S2-1 and G1-2.
The CEO is responsible for the implementation of ethical principles, and each member of the
management team is responsible for the guidelines within their area of responsibility.
The Supplier Code of Conduct outlines Puuilo's requirements for suppliers. The ethical guidelines for
procurement are detailed in chapter G1-2 Supplier Relationship Management.
The HR department is responsible for updating the House Book and ethical guidelines, while the
procurement organization is responsible for supplier collaboration. The House Book and ethical
guidelines are available electronically to all Puuilo employees, and their review is part of the onboarding
process. The Supplier Code of Conduct is included in the supplier selection process and cooperation
agreements.
The corporate culture is characterized by a low hierarchy. Management regularly interacts with staff
through informal discussion sessions, the cooperation committee, and internal organizational
collaboration. The corporate culture is assessed through an annual employee survey.
Puuilo has an open whistleblowing channel for reporting or suspecting violations of principles. The
whistleblowing channel is described in disclosure requirement S1-3. In the event of business disruptions,
internal control procedures are followed.
In addition to onboarding, employees are trained annually on ethical conduct. The HR department
monitors the completion of the training.
74
Key individuals in preventing corruption and bribery are those with financial decision-making authority,
such as members of the management team and those responsible for purchases and indirect
procurement.
The most important measures implemented in 2024 regarding material topics include:
• Training on ethical conduct
• Employee satisfaction survey
These measures cover the entire Puuilo staff and are carried out annually.
Regarding material topics, Puuilo has set a target for the results of the employee satisfaction survey.
The target is set for one year at a time, with the goal of continuous improvement, aiming for better results
than the previous year.
G1-2 Management of relationships with suppliers
Puuilo aims to develop its operations with goods and service suppliers in a long-term manner. Stable
partnerships can create more efficient business relationships and enhance the profitability of both
parties.
Puuilo's practice is to pay all invoices on time and adhere to generally accepted, reasonable payment
terms in the industry. There are no special payment practices specifically for small and medium-sized
enterprises; the same principles apply to all suppliers. An exception is invoices for imported products,
which are typically paid before the products are recorded in Puuilo's warehouse or within 30 days of
shipment. Due payments are monitored daily by Puuilo's invoice processing. The goal is to pay invoices
by the due date, excluding invoices that have been disputed with the supplier or have other issues to be
resolved. In such cases, the supplier is always contacted. There are no ongoing lawsuits or disputes
due to payment delays.
It is important for Puuilo to prevent potential environmental or human rights violations in the supply chain
and the resulting reputational damage and loss of customer trust. Supplier relationship maintenance is
conducted in accordance with the company's ethical rules and procurement ethical guidelines.
Continuous communication with suppliers includes regular meetings, buyer visits to suppliers, and
periodic negotiations on the terms of cooperation agreements.
The basic principles and expectations for suppliers are outlined in the Supplier Code of Conduct, which
is based on the OECD Guidelines for Multinational Enterprises. Puuilo categorizes suppliers into two
classes based on country risk. Suppliers from Finland or other low-risk countries are required to commit
to Puuilo's Supplier Code of Conduct. Suppliers located in high-risk countries are required to have an
amfori BSCI or equivalent certification. The Supplier Code of Conduct applies to all Puuilo suppliers.
The CEO is responsible for the implementation of the procurement ethical guidelines, and each member
of the management team is responsible for the guidelines within their area of responsibility.
The Supplier Code of Conduct requires suppliers to respect internationally recognized human rights and
promote fundamental labour rights. Additionally, suppliers and partners must proactively identify
environmental impacts and avoid harmful environmental effects such as biodiversity loss, clean water
availability issues, emissions to air, land, or water, and the use of virgin rare raw materials.
Suppliers and partners report on the promotion of responsibility upon request. If deficiencies are found
in operations, corrective actions are sought primarily in cooperation. Puuilo is not significantly dependent
on individual suppliers, and cooperation can be terminated if the supplier does not commit to correcting
deficiencies.
75
The most important measures implemented in 2024 regarding supplier relationship management include:
• Maintaining supplier relationships: continuous communication with suppliers, including regular
meetings, buyer visits to suppliers, and periodic negotiations on the terms of cooperation
agreements.
Puuilo has set the following goal regarding supplier relationship management:
• Increase the share of suppliers from high-risk countries committed to amfori BSCI or equivalent
to 90 percent by 2028. The achievement in 2024 was 85.5 percent.
Metrics and Targets
G1-6 – Payment Practices
Puuilo's purchase invoices are mainly paid according to a 30–60-day payment term, regardless of the
size of the supplier company. An exception is invoices for imported products, which are typically paid
before the products are recorded in Puuilo's warehouse or within 30 days of shipment at the latest. Due
payments are monitored daily by Puuilo's invoice processing team. The goal is to pay invoices by the
due date, excluding invoices that have been disputed with the supplier or have other issues to be
resolved. In such cases, the supplier is always contacted. The company estimates that the average time
taken to pay an invoice from the day the statutory payment term calculation begins is 46 days. This
average is estimated based on the turnover rate of purchase invoices. There are no ongoing legal
proceedings or disputes due to payment delays.
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Financial Statements
Consolidated Statement of Comprehensive Income
EUR million
Note
1 Feb 2024 -
31 Jan 2025
1 Feb 2023 -
31 Jan 2024
Net sales
2.1
Other operating income
2.1
Materials and services
2.3
-238.8
-214.5
Personnel expenses
2.3
-38.5
-35.4
Other operating expenses
2.3
-22.6
-21.0
Depreciation, amortisation and impairments
4.1-4.4
-19.0
-15.2
Operating profit
Finance income
5.6
Finance costs
5.6
-5.8
-5.4
Total finance income and costs
-5.2
-4.4
Profit before taxes
Current income tax
2.4
-12.6
-10.2
Deferred income tax
2.4
Total income tax expense
-12.0
-9.7
Profit for the period
Total comprehensive income for the period
Profit for the period attributable to:
Owners of the parent
Profit for the period
Earnings per share for profit attributable to owners of the
parent
Basic and diluted earnings per share (EUR)
5.3
The Notes are an integral part of these financial statements.
77
Consolidated Balance Sheet
EUR million
Note
31 Jan 2025
31 Jan 2024
ASSETS
Non-current assets
Goodwill
4.1
Intangible assets
4.2
Property, plant and equipment
4.3
Right-of-use assets
4.4
Deferred tax assets
2.4
Total non-current assets
Current assets
Inventories
3.1
Trade receivables
3.2, 5.5
Other receivables
3.2
Cash and cash equivalents
Total current assets
Total assets
EUR million
31 Jan 2025
31 Jan 2024
Equity and liabilities
Equity
Share capital
5.2
Reserve for invested unrestricted equity
5.2
Retained earnings
Profit for the period
Total equity attributable to owners of the parent
Total equity
Liabilities
Non-current liabilities
Loans from financial institutions
5.4, 5.5
Lease liabilities
4.4
Provisions
4.5
Deferred tax liabilities
2.4
Total non-current liabilities
Current liabilities
Lease liabilities
4.4
Trade payables
3.3, 5.5
Advances received
2.1
Income tax liabilities
2.4
Other current liabilities
3.3, 5.5
Total current liabilities
Total liabilities
Total equity and liabilities
The Notes are an integral part of these financial statements.
78
Consolidated Statement of Changes in Equity
Attributable to owners of the parent
EUR million
Note
Share
capital
Reserve for
invested
unrestricted
equity
Own
shares
Retained
earnings
Total
equity
Equity on 1 Feb 2024
-3.2
Profit for the period
Total comprehensive
income for the period
Dividends
5.2
-32.0
-32.0
Acquisition of own shares
5.2
-
Share-based incentive plan
2.3
Total transactions with owners
-
-31.2
-31.2
Equity on 31 Jan 2025
-3.2
Attributable to owners of the parent
EUR million
Note
Share
capital
Reserve for
invested
unrestricted
equity
Own
shares
Retained
earnings
Total
equity
Equity on 1 Feb 2023
-1.5
Profit for the period
Total comprehensive
income for the period
Dividends
5.2
-28.7
-28.7
Purchase of own shares
5.2
-1.7
-1.7
Share-based incentive plan
2.3
Total transactions with owners
-1.7
-28.2
-29.9
Equity on 31 Jan 2024
-3.2
The Notes are an integral part of these financial statements.
79
Consolidated Statement of Cash Flows
EUR million
Note
1 Feb
2024 -
31
Jan 2025
1 Feb
2023 -
31
Jan 2024
Cash flows from operating activities
Profit for the period
Adjustments for:
Depreciation, amortisation and impairments
4.1-4.4
Gains/losses on disposal of property, plant and equipment
Other non-cash adjustments
Finance income and costs
5.6
Income tax expense
2.4
Changes in working capital
Change in trade and other receivables
3.2
-1.0
-1.7
Change in inventories
3.1
-22.4
-3.2
Change in trade and other current non-interest-bearing liabilities
3.3
Interests paid
-2.6
-3.0
Interests of lease liabilities
-2.9
-2.0
Interests received
Arrangement fee for loans from financial institutions and other financial costs
-0.3
-0.3
Income taxes paid
-12.4
-9.5
Net cash flows generated from operating activities
Cash flows from investing activities
Payments for intangible assets
4.2
-2.3
-1.2
Payments for property, plant and equipment
4.3
-4.8
-3.5
Proceeds from sale of property, plant and equipment
4.3
Net cash used in investing activities
-7.1
-4.7
Cash flows from financing activities
Repayments of loans from financial institutions
5.1
-20.0
Principal elements of lease liabilities
5.1
-13.1
-10.3
Dividends
5.2
-32.0
-28.7
Acquisition of own shares
-1.7
Net cash used in financing activities
-45.1
-60.7
Net increase (+)/(-) decrease in cash and cash equivalents
-3.1
-7.3
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period
The Notes are an integral part of these financial statements.
80
Notes to the Consolidated Financial Statements
1 Basis of preparation
2 Business performance
3 Working capital
4 Capital employed
5 Capital structure and financing
6 Other notes
81
1 BASIS OF PREPARATION
82
83
2 BUSINESS PERFORMANCE
84
85
86
87
88
89
90
91
3 WORKING CAPITAL
Note 3.1 Inventories
92
93
94
4 CAPITAL EMPLOYED
95
96
97
98
99
100
101
102
5 CAPITAL STRUCTURE AND FINANCING
103
104
105
106
107
108
109
110
111
6 OTHER NOTES
112
113
114
115
Parent company Financial Statements
Parent company’s income statement
EUR
1 Feb 2024 - 31 Jan
2025
1 Feb 2023 - 31 Jan 2024
Net sales
1,468,258.80
1,381,121.76
Other operating income
2,401.63
5,015,210.93
Personnel expenses
Wages and salaries
1,293,519.16
-1,251,944.96
Social security costs
Pension costs
-205,597.83
-177,726.83
Other social security costs
-23,458.61
-29,770.84
Personnel expenses, total
-1,522,575.60
-1,459,442.63
Other operating expenses
-725,922.20
-952,070.80
Operating profit (loss)
-777,837.37
3,984,819.24
Financial income and expenses
Revenue from shares in other Group companies
-
697,855.55
Other interest and financial income
From others
43,838.80
59,005.86
Interest expenses and other financial expenses
To others
-1,702,875.87
-2,209,436.33
Financial income and expenses, total
-1,659,037.07
-1,452,574.92
Profit (loss) before appropriations and taxes
-2,436,874.44
2,532,244.32
Appropriations
Group contribution
Group contributions received
65,184,329.05
51,338,529.14
Appropriations, total
65,184,329.05
51,338,529.14
Income taxes
Taxes for the financial period
-12,571,443.48
-9,774,409.80
Income taxes, total
-12,571,443.48
-9,774,409.80
Profit (loss) for the financial period
50,176,011.13
44,096,363.66
116
Parent company’s balance sheet
EUR
31 Jan 2025
31 Jan 2024
Assets
Non-current assets
Investments
Shares in Group companies
73,156,725.91
73,156,725.91
Investments total
73,156,725.91
73,156,725.91
Non-current assets total
73,156,725.91
73,156,725.91
Current assets
Receivables
Current
Receivables from Group companies
93,772,875.73
76,327,501.64
Other receivables
0.00
128.80
Accrued income
94,991.59
117,936.29
Current total
93,867,867.32
76,445,566.73
Cash at hand and in banks
1,301,625.22
341,262.50
Current assets total
95,169,492.54
76,786,829.23
Assets total
168,326,218.45
149,943,555.14
EUR
31 Jan 2025
31 Jan 2024
Equity and liabilities
Equity
Share capital
80,000.00
80,000.00
Reserve for invested unrestricted equity
30,000,004.98
30,000,004.98
Profit (loss) for previous financial periods
54,448,699.17
42,356,677.65
Profit (loss) for the financial period
50,176,011.13
44,096,363.66
Equity total
134,704,715.28
116,533,046.29
Liabilities
Non-current liabilities
Loans from financial institutions
30,000,000.00
30,000,000.00
Non-current liabilities total
30,000,000.00
30,000,000.00
Current liabilities
Trade payables
70,478.70
63,808.08
Liabilities to Group companies
211,919.89
137,529.27
Other liabilities
136,326.41
105,722.41
Accrued expenses
3,202,778.17
3,103,449.09
Current liabilities total
3,621,503.17
3,410,508.85
Liabilities total
33,621,503.17
33,410,508.85
Liabilities total
168,326,218.45
149,943,555.14
117
Parent company’s cash flow statement
EUR
1 Feb 2024 -
31 Jan 2025
1 Feb 2023 -
31 Jan 2024
Cash flow from operating activities:
Profit (loss) before appropriations and taxes
-2,436,874.44
2,532,244.32
Adjustments:
Financial income and expenses
1,659,037.07
1,452,574.92
Gain from merger
-
-5,015,210.93
Cash flow before change in working capital
-777,837.37
-1,030,391.69
Change in working capital:
Increase(-)/decrease(+) of non-interest-bearing current accounts receivable
12,234.02
-57,534.71
Increase(-)/decrease(+) of non-interest-bearing current liabilities
76,040.68
14,668.82
Cash flow from operating activities before financial items and taxes
-689,562.67
-1,073,257.58
Paid interest and payments from other financial expenses from operating
activities
-1,702,875.87
-2,209,436.33
Financial income from operating activities
43,838.80
59,005.86
Direct taxes paid
-12,436,489.84
-9,488,507.60
Cash flow before extraordinary items
-14,785,089.58
-12,712,195.65
Cash flow from operating activities (A)
-14,785,089.58
-12,712,195.65
Cash flow from investment activities (B):
-
-
Financing cash flow:
Repayments of loans from financial institutions
-
-20,000,000.00
Dividends paid
-32,004,342.14
-28,676,264.02
Acquisition of own shares
-
-1,705,243.92
Change in Group financing
47,749,794.44
62,843,565.16
Financing cash flow (C):
15,745,452.30
12,462,057.22
Changes in cash and cash equivalents (A+B+C) increase(+)/decrease(-)
960,362.72
-250,138.43
Cash and cash equivalents at the beginning of the financial period
341,262.50
328,427.20
Funds transferred in the merger
-
263,153.73
Cash and cash equivalents at the end of the financial period
1,301,625.22
341,262.50
118
Notes to the parent company’s financial statements
Accounting policies
Puuilo Plc’s financial statements have been prepared in accordance with the Finnish Accounting Act
and ordinances and other statutes concerning the preparation of financial statements.
Trade receivables, accrued income and other receivables are recognised at their nominal value or their
lower probable value. Liabilities are recognised at their nominal value.
The financial statements have been prepared in accordance with the measurement and recognition
principles and methods prescribed in chapter 2, section 2 a of the Accounting Ordinance.
Significant events in the financial period
Performance matching share plan for key employees
The Board of Directors decided to launch a new share-based incentive plan for years 2024 – 2026. The
aim of the plan is to align the objectives of the shareholders and the key employees in order to increase
the value of the company in the long-term. In the plan, it is possible to earn time-vested matching reward
shares and performance-based matching reward shares. The performance criteria are the Total
Shareholder Return of the Puuilo share (TSR) and Puuilo Group’s adjusted EBITA. The maximum
number of matching shares (gross before taxes) to be paid was 738,000 Puuilo Plc shares. The final
number of matching shares depends on the key employees’ participation and savings rate in the plan
and the fulfilment of the prerequisites for receiving matching shares. The potential award will be paid
partly in shares and partly in cash after the end of the holding period. The cash proportion is intended
to cover taxes and statutory social security contributions arising from the award. (Stock exchange
release 16 April 2024)
At the end of the financial year, the maximum number of shares to be paid as award was 196,251 shares.
Puuilo Plc’s updated long-term financial targets for the strategy period 2024 – 2028
Puuilo released updated long-term financial targets for the strategy period 2024 – 2028. The new targets
are discussed on the first page of this review. (Stock exchange release 22 April 2024)
Composition of the Shareholders’ Nomination Board
Representatives of the three largest shareholders registered in Puuilo Plc’s shareholder register as of 1
October 2024 were elected to the Puuilo’s Shareholders’ Nomination Board along with the Chairman of
the Board of Directors, Lasse Aho, as an expert member. The three largest shareholders nominated the
following representatives to the Nomination Board: Ampfield Management, L.P., represented by
Emerson Moore, Markku Tuomaala, represented by Janne Koikkalainen and Mutual Pension Insurance
Company Ilmarinen, represented by Esko Torsti. (Stock exchange release 18 December 2024)
Significant events after the end of the reporting period
Adjusted EBITA exceeded guidance for financial year 2024, preliminary information on financial year 2024 results
119
Puuilo released preliminary information about the financial year 2024 results. Puuilo's net sales for the
financial year 2024 (February 2024 – January 2025) were EUR 383.4 million, and the adjusted EBITA
was EUR 67.0 million, or 17.5% of net sales. Previously, Puuilo had guided that the nets sales for the
financial year 2024 would be between EUR 380 – 400 million and the adjusted EBITA would be between
EUR 60–66 million. (Stock exchange release 10 March 2025)
Proposals of the Shareholders' Nomination Board
The Shareholders’ Nomination Board of Puuilo Plc proposes to the Annual General Meeting that the
number of the members of the Board of Directors will be five (previously six). The Nomination Board
proposes that current members of the Board of Directors Jens Joller, Mammu Kaario and Tuomas
Piirtola be re-elected. The Nomination Board also proposes that Susanne Hounsgaard and Markku
Tuomaala be elected as new members to the Board of Directors. Current members of the Board of
Directors Lasse Aho, Bent Holm and Anne-Mari Paapio have notified the company that they are no
longer available to be elected as a members of the Board of Directors. All proposed persons are
independent of the company and its major shareholders except Jens Joller who is independent of the
company, but dependent of the major shareholder. The Nomination Board proposes to the Annual
General Meeting that Mammu Kaario be elected as the Chair of the Board of Directors.
The Nomination Board proposes that the remunerations of the members of the Board of Directors are
as follows:
-EUR 65,000 (earlier EUR 60,000) to the Chair of the Board of Directors as annual remuneration
-EUR 33,000 (earlier EUR 30,000) to the other members of the Board of Directors as annual
remuneration
-In addition, the Chair of the Audit Committee will be paid EUR 6,000 (earlier EUR 5,000) as annual
remuneration and other members of the Audit Committee EUR 3,000 (earlier EUR 2,500) as annual
remuneration
All remunerations will be paid in cash. (Stock exchange release 19 March 2025)
Refinancing
Puuilo has signed a new EUR 100 million long-term financing agreement with OP Corporate Bank Plc.
The new financing agreement has a maturity of 36 months and includes two 12-month extension options.
The new financing agreement replaces the previous agreement signed in 2021.
The financing agreement includes a total of EUR 70 million term loan and EUR 30 million revolving
credit facility (RCF). The funds will be used to repay existing loans, working capital financing and for the
Group’s other general financing needs. The terms of the financing agreement include one covenant: net
debt/EBITDA ratio.
The agreement also includes EUR 30 million uncommitted additional financing option (accordion option).
However, this accordion option requires a separate financing decision from the bank. (stock exchange
release 27 March 2025)
Change in the holding of Puuilo Plc’s treasury shares
A total number of 126,481 Puuilo shares held by the company has been conveyed without consideration
to 28 key employees participating in the share-based incentive program 2022–2024. The program was
announced on 20 April 2022 with stock exchange release. The conveyance is based on the authorisation
granted to the Board of Directors by the Annual General Meeting of Shareholders held on 15 May 2024.
120
After the share transfer on 14 April 2025, the company holds a total of 428,519 own shares. (Stock
exchange release 15 April 2025)
Board of Directors established a new long-term incentive plan for company’s key employees
The Board of Directors of Puuilo Plc has resolved to establish a new Long-Term Incentive Plan for the
key employees of the Company and its subsidiaries (“LTI”) and launch the first LTI plan period for 2025–
2027.
The purpose of the LTI is to encourage the key employees to acquire and own the Company’s shares.
The LTI also aims to align the interests of the shareholders and the key employees as well as to increase
key employees’ motivation and long-term commitment to the Company. The LTI is intended to consist
of annually commencing plan periods, each with a 12-month savings period followed by a holding period
of approximately one and a half year. The Board of Directors will resolve annually on the launch of a
new plan period. Participation in the LTI is voluntary, and key employees are invited to participate in
each plan period separately.
The first LTI plan period 2025–2027 begins on 1 June 2025 and ends on 31 May 2028. The first savings
period ends on 31 May 2026. The holding period begins at the first acquisition of savings shares. In the
2025–2027 plan period, the LTI is offered to approximately 100 key employees of the Group, including
also the Management Team and the CEO. As part of the LTI, the key employees have an opportunity
to make a one-off investment and/or save a proportion of their salaries and invest those savings in
Puuilo shares. With the savings of the 2025–2027 plan period, Puuilo shares will be acquired in four
tranches estimated in September 2025, December 2025, March 2026 and June 2026.
In the 2025–2027 plan period, as a reward for their commitment, the Company grants the key employees
participating in the LTI a gross reward of one free matching share for every savings share acquired with
their savings. The participants have also an opportunity to earn one to three performance-based
matching shares (gross) for each savings share acquired with their savings if the performance criteria
set for the plan period are met. The performance criteria of the plan are tied to the total shareholder
return of the share (TSR), the company’s adjusted earnings before interest, taxes and amortisation
(EBITA) and return on invested capital (ROIC). Continuity of employment and holding of acquired
savings shares for the duration of the holding period, ending on the day following the 2027 financial
statement release, are prerequisites for receiving the award. The potential award will be paid partly in
shares and partly in cash after the end of the holding period. The cash proportion is intended to cover
taxes and statutory social security contributions arising from the award. Matching shares will be freely
transferable after their registration in a participant’s book-entry account. The savings shares and
matching share are Puuilo shares.
The maximum number of matching shares (gross before taxes) for the first plan period of 2025–2027 is
approximately 519 000 shares, calculated at the share price on 16 April 2025. The final number of
matching shares depends on the key employees’ participation and savings rate in the plan, the fulfilment
of the prerequisites for receiving matching shares and the number of shares acquired from the market
with savings. (Stock exchange release 17 April 2025)
121
Notes to the income statement
Net sales
EUR
1 Feb 2024 - 31 Jan 2025
1 Feb 2023 - 31 Jan 2024
Management fees charged from group companies
1,468,258.80
1,381,121.76
Total
1,468,258.80
1,381,121.76
Other operating income
EUR
1 Feb 2024 - 31 Jan 2025
1 Feb 2023 - 31 Jan 2024
Gain from merger
-
5,015,210.93
Other
2,401.63
-
Total
2,401.63
5,015,310.93
Finance income and cost
EUR
1 Feb 2024 - 31 Jan
2025
1 Feb 2023 - 31 Jan
2024
Interest and financial income from other Group companies
-
697,855.55
Interest income from others
43,838.80
59,005.86
Interest expenses to others
-1,702,875.87
-2,209,436.33
Total
-1,659,037.07
-1,452,574.92
Auditors’ fees
EUR
31 Jan 2025
31 Jan 2024
Audit
105,586.70
97,820.00
Other services
-
24,949.82
Total
105,586.70
122,769.82
Number of personnel
31 Jan 2025
31 Jan 2024
Average number of personnel
7
7
Total
7
7
Personnel expenses
EUR
31 Jan 2025
31 Jan 2024
Salaries and wages
1,293,519.16
1,251,944.96
Pension costs
205,597.83
177,726.83
Other social security costs
23,458.61
29,770.84
Total
1,522,575.60
1,459,442.63
122
Notes to the assets in balance sheet
Material items included in accrued income
EUR
31 Jan 2025
31 Jan 2024
Prepaid expenses
94,790.69
117,864.59
Other
20.90
71.70
Total
94,991.59
117,936.29
Receivables from Group companies
EUR
31 Jan 2025
31 Jan 2024
Trade receivables
153,555.40
142,715.92
Group contribution receivables
93,619,320.33
76,184,785.72
Total
93,772,875.73
76,327,501.64
Notes to the equity and liabilities in balance sheet
Equity
EUR
31 Jan 2025
31 Jan 2024
Share capital at the beginning of the financial period
80,000.00
80,000.00
Share capital at the end of the financial period
80,000.00
80,000.00
Restricted equity total at the end of the financial period
80,000.00
80,000.00
Reserve for invested unrestricted equity at the beginning of the financial period
30,000,004.98
30,000,004.98
Reserve for invested unrestricted equity at the end of the financial period
30,000,004.98
30,000,004.98
Profit (loss) for previous financial periods at the beginning of the financial period
42,356,677.65
31,440,985.96
Transfer of profit (loss) from previous financial period
44,096,363.66
41,297,199.63
Dividend distribution
-32,004,342.14
-28,676,264.02
Acquisition of own shares
-
-1,705,243.92
Profit (loss) for previous financial periods at the end of the financial period
54,448,699.17
42,356,677.65
Profit (loss) for the financial period
50,176,011.13
44,096,363.66
Unrestricted equity at the end of the financial period
134,624,715.28
116,453,046.29
Equity total
134,704,715.28
116,533,046.29
123
Calculation of distributable funds in equity
EUR
31 Jan 2025
31 Jan 2024
Profit (loss) for previous financial periods
54,448,699.17
42,356,677.65
Profit (loss) for the financial period
50,176,011.13
44,096,363.66
Reserve for invested unrestricted equity
30,000,004.98
30,000,004.98
Distributable funds total
134,624,715.28
116,453,046.29
Material items included in deferred liabilities
EUR
31 Jan 2025
31 Jan 2024
Salary accruals
54,046.03
53,578.72
Social security costs
53,153.52
54,563.85
Holiday pay expenses incl. social security costs
195,251.57
188,664.35
Interest expenses
106,883.57
148,152.33
Income tax
2,793,443.48
2,658,489.84
Total
3,202,778.17
3,103,449.09
Holdings in other companies
Puuilo Plc (parent company) has one wholly owned subsidiary, Puuilo Tavaratalot Ltd.
124
Signatures
The financial statements prepared in accordance with the applicable set of accounting standards give
a true and fair view of the assets, liabilities, financial position and profit or loss of the company and the
companies included in its consolidated financial statements. The Report by the Board of Directors
presents a fair review of the development and performance of the company and the companies
included in its consolidated financial statements, as well as a description of the significant risks and
uncertainties and the company’s position. The sustainability statement included in the Report by the
Board of Directors has been prepared in compliance with the sustainability reporting standards as well
as Article 8 of the Regulation (EU) 2020/852 of the European Parliament and of the Council
(Taxonomy Regulation).
oper
Date and signature
In Helsinki,
23 April 2025
Lasse Aho
Chair of the Board
Bent Holm
Member of the Board
Jens Joller
Member of the Board
Mammu Kaario
Member of the Board
Anne-Mari Paapio
Tuomas Piirtola
Member of the Board
Member of the Board
Juha Saarela
CEO
Auditor’s report
An auditor’s report has been issued today.
In Helsinki,
23 April 2025
PricewaterhouseCoopers Ltd
Authorised Public Accountants
Mikko Nieminen
APA
1 (6)
PricewaterhouseCoopers Oy, Authorised Public Accountants, P.O. Box 1015 (Itämerentori 2), FI-00101 HELSINKI
Phone. +358 20 787 7000, www.pwc.fi
Reg. Domicile Helsinki, Business ID 0486406-8
Auditor’s Report (Translation of the Finnish Original)
To the Annual General Meeting of Puuilo Oyj
Report on the Audit of the Financial Statements
Opinion
In our opinion
• the consolidated financial statements give a true and fair view of the group’s financial position, financial
performance and cash flows in accordance with IFRS Accounting Standards as adopted by the EU
• the financial statements give a true and fair view of the parent company’s financial performance and
financial position in accordance with the laws and regulations governing the preparation of financial
statements in Finland and comply with statutory requirements.
Our opinion is consistent with the additional report to the Audit Committee.
What we have audited
We have audited the financial statements of Puuilo Oyj (business identity code 2726573-8) for the year ended
31 January 2025. The financial statements comprise:
• the consolidated balance sheet, statement of comprehensive income, statement of changes in equity,
statement of cash flows and notes, which include material accounting policy information and other
explanatory information
• the parent company’s balance sheet, income statement, cash flow statement and notes.
Basis for Opinion
We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good
auditing practice are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements
section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Independence
We are independent of the parent company and of the group companies in accordance with the ethical
requirements that are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
To the best of our knowledge and belief, the non-audit services that we have provided to the parent company
and group companies are in accordance with the applicable law and regulations in Finland and we have not
provided non-audit services that are prohibited under Article 5(1) of Regulation (EU) No 537/2014. The non-
audit services that we have provided are disclosed in note 2.3 to the Financial Statements.
2 (6)
Our Audit Approach
Overview
• Overall group materiality is € 2,9 million. We have estimated that in Puuilo
Group's audit, the material errors are such that alone or as a whole impact on
the group’s result before taxes approximately 5%.
• Audit scope has included Puuilo Oyj and Puuilo Tavaratalot Oy
• Inventory valuation
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the
financial statements. In particular, we considered where management made subjective judgements; for
example, in respect of significant accounting estimates that involved making assumptions and considering
future events that are inherently uncertain.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain
reasonable assurance whether the financial statements are free from material misstatement. Misstatements
may arise due to fraud or error. They are considered material if individually or in aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of the financial
statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including
the overall group materiality for the consolidated financial statements as set out in the table below. These,
together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing
and extent of our audit procedures and to evaluate the effect of misstatements on the financial statements as a
whole.
3 (6)
Overall group materiality € 2,9 million (previous year € 2,4 million).
How we determined it 5% of profit before taxes.
Rationale for the materiality
benchmark applied
We chose profit before tax as the benchmark because, in our view, it
is the benchmark against which the performance of the group is most
commonly measured by users, and is a generally accepted
benchmark. We chose 5% which is within the range of acceptable
quantitative materiality thresholds in auditing standards.
How we tailored our group audit scope
We tailored the scope of our audit, taking into account the structure of the Puuilo Group, the accounting
processes and controls, and the industry in which the group operates.
Our audit scope consisted of Puuilo Group’s two entities: Puuilo Oyj and Puuilo Tavaratalot Oy.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters.
As in all of our audits, we also addressed the risk of management override of internal controls, including among
other matters consideration of whether there was evidence of bias that represented a risk of material
misstatement due to fraud.
Key audit matter in the audit of the group How our audit addressed the key audit matter
Inventory valuation
Reference to the financial statements note 3.1.
Inventory valuation
Puuilo Group's balance sheet includes inventory
worth 115,5 (2023: 93,1) million euros. The
acquisition cost of the inventory has been
determined using the weighted average price
method. The acquisition cost of finished products
includes all purchase costs, including immediate
transportation and handling costs. In the calculation
of the acquisition cost, the subsequent credits
granted by the suppliers are also taken into
account. inventory is valued at acquisition cost or
net realisable value, whichever is lower.
In our audit, we paid special attention to the
determination of the acquisition cost of the inventory,
including the effect of the amount of subsequent
Our audit procedures included, among others:
− We evaluated the inventory accounting
principles used by Puuilo against the
applicable accounting standards
− We went through the key processes and
controls related to inventory. We tested the
functionality of the selected controls.
− We compared the unit prices of the
selected inventory items with the purchase
invoices.
− We tested the correctness of the weighted
average price calculation
− We went through the calculation of
retroactive credits and performed selected
tests regarding their accounting practices
4 (6)
credits. In addition, we paid attention to the group's
estimates of the net realisable value of the inventory
and the assumptions underlying the estimates.
Inventories are a key issue from an audit point of
view due to the importance of the balance sheet item
and the extent of the store network and the risk
associated with valuation.
− We compared the unit prices of the
selected stock items with the selling prices
− We went through the rotation of the current
assets compared to the cost to identify
possible impairments.
We have no key audit matters to report with respect to our audit of the parent company financial statements.
There are no significant risks of material misstatement referred to in Article 10(2c) of Regulation (EU) No
537/2014 with respect to the consolidated financial statements or the parent company financial statements.
Responsibilities of the Board of Directors and the Managing Director for the Financial
Statements
The Board of Directors and the Managing Director are responsible for the preparation of consolidated financial
statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU,
and of financial statements that give a true and fair view in accordance with the laws and regulations governing
the preparation of financial statements in Finland and comply with statutory requirements. The Board of
Directors and the Managing Director are also responsible for such internal control as they determine is
necessary to enable the preparation of financial statements that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, the Board of Directors and the Managing Director are responsible for
assessing the parent company’s and the group’s ability to continue as a going concern, disclosing, as
applicable, matters relating to going concern and using the going concern basis of accounting. The financial
statements are prepared using the going concern basis of accounting unless there is an intention to liquidate the
parent company or the group or to cease operations, or there is no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with good auditing practice will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
5 (6)
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
parent company’s or the group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
• Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s use of the going
concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the parent company’s or the group’s ability
to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events or conditions may cause the parent company or the
group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events so that the financial
statements give a true and fair view.
• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business units within the group as a basis for forming an opinion on the group
financial statements. We are responsible for the direction, supervision and review of the audit work performed
for purposes of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Other Reporting Requirements
Appointment
We were first appointed as auditors by the annual general meeting on 26 April 2017. Our appointment
represents a total period of uninterrupted engagement of 8 years.
Puuilo Oyj became a significant entity in terms of public interest on 24 June 2021.
6 (6)
Other Information
The Board of Directors and the Managing Director are responsible for the other information. The other
information comprises the report of the Board of Directors. Our opinion on the financial statements does not
cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit, or otherwise appears to be materially misstated. Our responsibility also
includes considering whether the report of the Board of Directors has been prepared in compliance with the
applicable provisions, excluding the sustainability report information on which there are provisions in Chapter 7
of the Accounting Act and in the sustainability reporting standards.
In our opinion, the information in the report of the Board of Directors is consistent with the information in the
financial statements and the report of the Board of Directors has been prepared in compliance with the
applicable provisions. Our opinion does not cover the sustainability report information on which there are
provisions in Chapter 7 of the Accounting Act and in the sustainability reporting standards.
If, based on the work we have performed, we conclude that there is a material misstatement of the report of the
Board of Directors, we are required to report that fact. We have nothing to report in this regard.
Helsinki 23 April 2025
PricewaterhouseCoopers Oy
Authorised Public Accountants
Mikko Nieminen
Authorised Public Accountant (KHT)
1 (3)
PricewaterhouseCoopers Oy, Authorised Sustainability Auditors, PL 1015 (Itämerentori 2), 00101 HELSINKI
Phone +358 20 787 7000, www.pwc.fi
Reg. Domicile Helsinki, Business ID
Assurance Report on the Sustainability Report (Translation of
the Finnish Original)
To the Annual General Meeting of Puuilo Oyj
We have performed a limited assurance engagement on the group sustainability report of Puuilo Oyj (business
identity code 2726573-8) that is referred to in Chapter 7 of the Accounting Act and that is included in the report of
the Board of Directors for the reporting period 1.2.2024–31.1.2025.
Opinion
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our atten-
tion that causes us to believe that the group sustainability report does not comply, in all material respects, with
1) the requirements laid down in Chapter 7 of the Accounting Act and the sustainability reporting standards
(ESRS);
2) the requirements laid down in Article 8 of the Regulation (EU) 2020/852 of the European Parliament and of
the Council on the establishment of a framework to facilitate sustainable investment, and amending Regu-
lation (EU) 2019/2088 (EU Taxonomy).
Point 1 above also contains the process in which Puuilo Oyj has identified the information for reporting in accord-
ance with the sustainability reporting standards (double materiality assessment).
Our opinion does not cover the tagging of the group sustainability report in accordance with Chapter 7, Section
22, of the Accounting Act, because sustainability reporting companies have not had the possibility to comply with
that requirement in the absence of the ESEF regulation or other European Union legislation.
Basis for Opinion
We performed the assurance of the group sustainability report as a limited assurance engagement in compliance
with good assurance practice in Finland and with the International Standard on Assurance Engagements (ISAE)
3000 (Revised) Assurance Engagements Other than Audits or Reviews of Historical Financial Information.
Our responsibilities under this standard are further described in the Responsibilities of the Authorised Group Sus-
tainability Auditor section of our report.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Authorised Group Sustainability Auditor's Independence and Quality Management
We are independent of the parent company and of the group companies in accordance with the ethical require-
ments that are applicable in Finland and are relevant to our engagement, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
Our firm applies International Standard on Quality Management ISQM 1, which requires the firm to design, imple-
ment and operate a system of quality management including policies or procedures regarding compliance with
ethical requirements, professional standards and applicable legal and regulatory requirements.
2 (3)
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors and the Managing Director of Puuilo Oyj are responsible for:
• the group sustainability report and for its preparation and presentation in accordance with the provisions of
Chapter 7 of the Accounting Act, including the process that has been defined in the sustainability reporting
standards and in which the information for reporting in accordance with the sustainability reporting standards
has been identified
• the compliance of the group sustainability report with the requirements laid down in Article 8 of the Regulation
(EU) 2020/852 of the European Parliament and of the Council on the establishment of a framework to facil-
itate sustainable investment, and amending Regulation (EU) 2019/2088;
• such internal control as the Board of Directors and the Managing Director determine is necessary to enable
the preparation of a group sustainability report that is free from material misstatement, whether due to fraud
or error.
Inherent Limitations in the Preparation of a Sustainability Report
In reporting forward-looking information in accordance with ESRS, management of the Company is required to
prepare the forward-looking information on the basis of assumptions that have been disclosed in the sustainabil-
ity report about events that may occur in the future and possible future actions by the Group. Actual outcomes
are likely to be different since anticipated events frequently do not occur as expected.
Responsibilities of the Authorised Group Sustainability Auditor
Our responsibility is to perform an assurance engagement to obtain limited assurance about whether the group
sustainability report is free from material misstatement, whether due to fraud or error, and to issue a limited assur-
ance report that includes our opinion. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the decisions of users taken on the
basis of the group sustainability report.
Compliance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) requires that we
exercise professional judgment and maintain professional skepticism throughout the engagement. We also:
• Identify and assess the risks of material misstatement of the group sustainability report, whether due to fraud
or error, and obtain an understanding of internal control relevant to the engagement in order to design as-
surance procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the parent company’s or the group’s internal control.
• Design and perform assurance procedures responsive to those risks to obtain evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
Description of the Procedures That Have Been Performed
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent
than for, a reasonable assurance engagement. The nature, timing and extent of assurance procedures selected
depend on professional judgment, including the assessment of risks of material misstatement, whether due to fraud
or error. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower
than the assurance that would have been obtained had a reasonable assurance engagement been performed.
3 (3)
Our procedures included for example the following:
• We interviewed the company’s management and the individuals responsible for collecting and reporting the
information contained in the group sustainability report at the group level, as well as at different levels and
business areas of the organization to gain an understanding of the sustainability reporting process and the
related internal controls and information systems.
• We familiarised ourselves with the background documentation and records prepared by the company where
applicable, and assessed whether they support the information contained in the group sustainability report.
• We assessed the company's double materiality assessment process in relation to the requirements of the
ESRS standards, as well as whether the information provided about the assessment process complies with
the ESRS standards.
• We assessed whether the sustainability information contained in the group sustainability report complies
with the ESRS standards.
• Regarding the EU taxonomy information, we gained an understanding of the process by which the company
has identified the group's taxonomy-eligible and taxonomy-aligned economic activities, and we assessed the
compliance of the information provided with the regulations.
Helsinki 23.4.2025
PricewaterhouseCoopers Oy
Authorised Sustainability Auditors
Mikko Nieminen
Authorised Sustainability Auditor
1 (2)
PricewaterhouseCoopers Oy, Authorised Public Accountants, P.O. Box 1015 (Itämerentori 2), FI-00101 HELSINKI
Phone +358 20 787 7000, www.pwc.fi
Reg. Domicile Helsinki, Business ID 0486406-8
Independent Auditor’s Reasonable Assurance Report on
Puuilo Oyj’s ESEF Financial Statements (Translation of the
Finnish Original)
To the Management of Puuilo Oyj
We have been engaged by the Management of Puuilo Oyj (business identity code (2726573-8) (hereinafter also
“the Company”) to perform a reasonable assurance engagement on the Company’s consolidated IFRS financial
statements for the financial year 1 February 2024 – 31 January 2025 in European Single Electronic Format
(“ESEF financial statements”) version 743700UJUT6FWHBXPR69-2025-01-31-1-fi.zip.
Management’s Responsibility for the ESEF Financial Statements
The Management of Puuilo Oyj is responsible for preparing the ESEF financial statements so that they comply
with the requirements as specified in the Commission Delegated Regulation (EU) 2019/815 of 17 December
2018 (“ESEF requirements”). This responsibility includes the design, implementation and maintenance of internal
control relevant to the preparation of ESEF financial statements that are free from material noncompliance with
the ESEF requirements, whether due to fraud or error.
Our Independence and Quality Management
We have complied with the independence and other ethical requirements of the International Code of Ethics for
Professional Accountants (including International Independence Standards) issued by the International Ethics
Standards Board for Accountants (IESBA Code), which is founded on fundamental principles of integrity,
objectivity, professional competence and due care, confidentiality and professional behaviour.
Our firm applies International Standard on Quality Management 1, which requires the firm to design, implement
and operate a system of quality management including policies or procedures regarding compliance with ethical
requirements, professional standards and applicable legal and regulatory requirements.
Our Responsibility
Our responsibility is to express an opinion on the ESEF financial statements based on the procedures we have
performed and the evidence we have obtained.
We conducted our reasonable assurance engagement in accordance with the International Standard on
Assurance Engagements (ISAE) 3000 (Revised) Assurance Engagements Other than Audits or Reviews of
Historical Financial Information. That standard requires that we plan and perform this engagement to obtain
reasonable assurance about whether the ESEF financial statements are free from material noncompliance with
the ESEF requirements.
A reasonable assurance engagement in accordance with ISAE 3000 (Revised) involves performing procedures to
obtain evidence about the ESEF financial statements compliance with the ESEF requirements. The procedures
selected depend on the auditor’s judgment, including the assessment of the risks of material noncompliance of
the ESEF financial statements with the ESEF requirements, whether due to fraud or error. In making those risk
assessments, we considered internal control relevant to the Company’s preparation of the ESEF financial
statements.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
2 (2)
Opinion
In our opinion, Puuilo Oyj’s ESEF financial statements for the financial year ended 31 January 2025 comply, in all
material respects, with the minimum requirements as set out in the ESEF requirements.
Our reasonable assurance report has been prepared in accordance with the terms of our engagement. We do not
accept, or assume responsibility to anyone else, except for Puuilo Oyj for our work, for this report, or for the
opinion that we have formed.
Helsinki 23 April 2025
PricewaterhouseCoopers Oy
Authorised Public Accountants
Mikko Nieminen
Authorised Public Accountant (KHT)